Tuesday, February 21, 2012


Singtel: Optus, announced that it has entered into a conditional agreement to acquire Vividwireless Group from Seven Group for a cash consideration of A$230m (up to A$280m with spectrum re-issuance fee).

Vividwireless operates several businesses including wireless broadband businesses trading under the brands vividwireless and unwired and focuses on metro areas which allow it greater subscriber density. Completion of the deal is still contingent on various conditions including the re-issuance of the 2.3Ghz spectrum licenses.

Overall, Citi remains Neutral and we find the acquisition to be sensible given the needs for spectrum for mobile data. The acquisition price appears consistent with previous frequency auctions. Believe the deal itself will not have any material impact for Singtel both from a profitability and value (SOTP) standpoint. keep stock at Neutral with $3.33 TP.

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