SingTel mulling sale, IPO of Optus satellite biz

SingTel mulling sale, IPO of Optus satellite biz

Summary: The telco is conducting a strategic review of the its Australian unit's satellite business to optimise value for shareholders.

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SingTel is reviewing its satellite business under its Australian unit Optus, raising the possibility of a sale or listing.

telco-satellite
SingTel is conducting a strategic review of Optus Satellite Business.

In a press release Monday, Southeast Asia's largest telco said a strategic review of the business was being conducted in order to "optimise value for shareholders".

The telco added it will make an appropriate announcement in the event of any material development arising from the review. Credit Suisse and Morgan Stanley have been hired as financial advisors to assist with the process.

The satellite business delivers free-to-air and pay TV, mobile telephony and broadband services to over 2 million Australian households and multi-national companies. The telco operates a fleet of five satellites, with another one due for launch this year.

Optus Satellite recorded revenues of A$319 million (US$330 million) for the financial year ended March 31, 2012. For the quarter ended December, the business posted a 8.3 percent increase at A$85 million (US$88 million) from the same period the previous year.

For the last quarter of 2012, Optus reported a 9.2 percent slump in net profit at A$160 million (US$165 million) on the back of slow mobile subscription growth amid a restructure phase.

 

Topics: Telcos, Networking, Optus, SingTel, Australia

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Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

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