One of the largest telcos in Asia just became $1.3 billion richer

by Dramelin 5:30 AM 0 comments

"We will realize a gain on the disposal of the shares in excess of about S$1.
8 billion," Singtel Group CEO Chua Sock Koong, told CNBC on the sidelines of Wednesday`s listing ceremony at the Singapore Exchange.
The successful debut of the fiber-infrastructure business was the largest float on the Singapore Exchange in six years and Singapore`s largest business trust listing to date.
On the proceeds from the IPO, Chua said: "We will use that to pay down debt, investments in our existing business, investments in growth initiatives, and we`re looking at other capital management initiatives.
" Those initiatives may include deleveraging the telco`s balance sheet or issuing a special dividend, but Singtel said it`s evaluating its options to act in the best interest of stakeholders.
"We`ve always believed in having a strong investment-grade rating for the company.
We like to have the financial flexibility to take advantage of investment opportunities when they come about.
" As for potential acquisitions, Chua said the company has "always been looking at investments that would enhance our growth outlook.
" "It could be in the digital space, it could be adding on to stakes in our existing associates," she said.
"We`ve always been financially very disciplined.
We would like to do deals that are accretive to our shareholders.
In the case of adding to our associate stakes, it`s a lot easier, but of course it is dependent on investment opportunities being available on terms that we are comfortable with.
" Chua added that, in the digital space, the telco "would be looking at investments that would allow us to expand our product range, that would allow us to expand our market reach.
" Singtel now owns 24.
99 percent of NetLink NBN Trust following the IPO, fulfilling its undertaking to Singapore`s regulator to divest its 100-percent stake to less than 25 percent before April 2018.
The telco is still considering its intentions with its remaining stake and didn`t give a timeline on an investment decision: "We review our investments on a regular basis," Chua said.
"NetLink Trust is a great company.
It`s got steady cash flows, it`s got a great business model and we are a big customer.
We will consider our investment decisions, taking all of that into consideration.