Singtel

Singtel: Announced its divestment of entire 3.98% stake in Taiwan’s Far EasTone (closing price NT$63.6). A total of $129.6m share were sold at avg price of NT$62 per share for $339m. Co will record a gain of approx $118m in 1Q2012 Jun-end. Meanwhile, Optus has also lost a legal dispute with Australian sports leagues after an appeal panel overturned a lower court ruling. Customers were initially allowed to download live broadcasts with a slight delay on Optus’s network (free-to-air TV) which made it able to avoid paying for the broadcasts which the leagues get revenue from. Negative impact to Optus may be limited to lower ad revenues and legal fees and seems unlikely to suffer too much in terms of reputation. Singtel now trades at 13.6x P/E with expected FY12 yield of 5.0% compared to Starhub at 17.5x with yield at 6.3%