Singtel

Singtel - Latest news was 2 days back when The Infocomm Development Authority (IDA) gave approval for SingTel’s NetLink Trust to acquire 100% of OpenNet for $126m. OpenNet is a joint venture between four partners (which includes SingTel as a 30% shareholder), responsible for building S’pore Next Generation Nationwide Broadband Network (NGNBN). To assuage industry concerns that SingTel could receive special treatment from OpenNet, the IDA has introduced safeguards and conditions to ensure that SingTel would not be able to have control over the management and key operations of OpenNet. In addition, SingTel will be required to cut its 100% stake in NetLink Trust to under 25% via a public listing, though the IDA has extended the dateline for this stake reduction to Apr ’18 from Apr ’14. Maybank-KE opines that StarHub, M1 and other ISPs are likely to view this development as a non-event, as they would have evolved in their own ways of coping with OpenNet. The house makes no changes to its ratings on Starhub (Buy, TP $5.13) and M1 (Buy, TP $3.98). Bottom-line is that SingTel (Hold, TP $3.60) remains the one under official pressure, as shareholders hoping for a special dividend from the spin-off of NetLink Trust would be disappointed now that the required sell-down period has been extended by four years.