Singaporean telco group SingTel has launched a strategic review of its Australian satellite operator subsidiary Optus, which could be worth as much as US$2.1bn.
Credit Suisse and Morgan Stanley have been appointed as financial advisers, said Singtel in…
Singaporean telco group SingTel has launched a strategic review of its Australian satellite operator subsidiary Optus, which could be worth as much as US$2.1bn.
Credit Suisse and Morgan Stanley have been appointed as financial advisers, said Singtel in a statement to the Singapore Exchange.
The review is “to optimise value for shareholders”, added the company.
It is thought that the move could lead to a sale or IPO of the asset, and analysts at Nomura have valued the unit at US$1.6bn-US$2.1bn.
Optus, which offers TV, mobile and broadband services in Australia, recorded revenues of A$319m (US$331m) for the financial year ended 31 March 2012.
The company operates a fleet of five satellites, with another spacecraft, Optus 10, scheduled for launch later this year.
Together with Thailand’s IPstar, Optus is providing interim services for Australia’s National Broadband Network Company (NBN Co), the PPP tasked with providing universal broadband services across the country.
NBN Co, which aims to provide a combination of fibre, wireless and satellite services, will use capacity from Optus until its own Ka-band spacecraft are launched by Arianespace in 2015.
SingTel’s underlying net profit fell 3% from S$3.8bn (US$3.040bn) in 2011 to S$3.68bn (US$2.94bn) in 2012, because of lower earnings from Indian associate Airtel and weaker regional currencies, according to the company’s financial results.
The Singaporean group is not the only Asian telco that could sell off its satellite business this year.
Korean telecoms operator KT Corp has recently spun off its satellite assets in a move seen as a step towards an eventual sale.
