Singtel denies plans to divest Australian telecom subsidiary Optus

Singtel on Optus divestment: Singapore Telecommunications (Singtel), the largest telecom operator in Southeast Asia, reaffirmed on Wednesday that there were no imminent plans to divest its Australian telecom subsidiary, Optus.

This statement from Singtel, which is primarily owned by Singapore's sovereign investor Temasek, comes after earlier denials in March regarding reports suggesting a potential sale of Optus to Canada's Brookfield for up to $12 billion.

Despite previous reports indicating advanced discussions with Brookfield, Singtel clarified that talks had ceased, leading to a temporary halt in the trading of its shares. The halt was imposed following challenges in reaching an agreement on valuation and pricing terms for the proposed transaction, specifically concerning the divestment of a 20 per cent stake in Optus.

Singtel's business operations are evenly divided between its Singaporean operations and Optus, each contributing significantly to its revenue, according to its annual report. Additionally, Singtel holds minority stakes in various telecom operators, including Bharti Airtel in India, Telkomsel in Indonesia, and Globe Telecom in the Philippines.

In response to media reports, Singtel advised shareholders and potential investors to exercise caution when considering information related to Optus until official announcements are made.

The mention of Optus in the news comes after the company faced public criticism in November following a 12-hour network outage affecting over 10 million Australians. The incident led to an investigation, the resignation of Optus's CEO at the time, and a fine of A$1.5 million ($977,100.00).

(With Reuters inputs)