Singtel - OCBC Investment 2016-08-18: Increasing its stake in AIS and Airtel

Singtel - OCBC Investment 2016-08-18: Increasing its stake in AIS and Airtel SINGTEL Z74.SI

Singtel - Increasing its stake in AIS and Airtel

  • Singtel announced this morning that it has entered into conditional share purchase agreements with Temasek to acquire 21% of Intouch Holdings (Intouch) and 7.4% of Bharti Telecom Limited (BTL) for a total consideration of S$2.47b. 
  • The acquisition will be settled fully in cash, funded through: 
    1. internal cash, 
    2. short- term debt, and 
    3. proceeds from share placement of 386m new Singtel shares to Temasek totaling S$1.61b at S$4.16/share
  • Singtel will pay Temasek THB60.83 (~S$2.35) for each share of Intouch, which amounts to S$1.59b, and INR235.62 (~S$4.74) for each share of BTL, which amounts to S$884.0m. These acquisitions as well as share placement are subject to minority shareholder and regulatory approvals. 
  • As the share placement and acquisitions are interdependent and have to close at the same time, we opt to keep our HOLD rating and S$4.26 FV unchanged for now
  • We will update once we have better clarity from management.




Eugene Chua OCBC Investment | http://www.ocbcresearch.com/ 2016-08-18
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 4.260 Same 4.260


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