SingTel - Maybank Research 2024-07-17: Our Take On Intouch Restructuring

SingTel - Our Take On Intouch Restructuring

Published:
SingTel (SGX:Z74) | SGinvestors.ioSingTel (SGX:Z74)
  • See SingTel's announcements dated 16 Jul – SingTel and Gulf Energy said Gulf Energy and its 47%-owned associate Intouch will be amalgamated to form Gulf (NewCo).

SingTel to swap Intouch stake for 9% of Gulf (NewCo)

  • - Read this at SGinvestors.io -
  • Before the transaction, Intouch will pay Bt4.5 in special dividends. SingTel/Intouch/Gulf will also proffer a voluntary tender offer (VTO) for AIS at THB216 per share ahead of the amalgamation, with SingTel getting the first 5ppt (of AIS’ total share base) of the tendered shares - capped at 10ppt.

Slight NPAT/cashflow dilution offset by special Intouch dividends

  • - Read this at SGinvestors.io -
  • Also, if Gulf (NewCo) maintains a similar payout ratio to Gulf Energy, we estimate that would lead to a 43% reduction in Intouch dividends, or S$45m per year net dividend cash flow loss for SingTel. However, the cash flow losses could be bridged by ~S$122m in special dividends from Intouch.
  • We think the impact on SingTel's earnings would likely come only in FY26.

We think SingTel will eventually exit Gulf (NewCo)

  • Read more at SGinvestors.io.




Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.




Hussaini Saifee Maybank Research | https://www.maybank-ke.com.sg/ 2024-07-17



Read also Maybank's most recent report:
2024-09-19 SingTel - Indian Supreme Court Rejects Telcos AGR Recomputation Plea.

Previous report by Maybank:
2024-09-02 SingTel Investor Day - Keep Calm & Carry On.

Price targets by 4 other brokers at SingTel Target Prices.

Listing of research reports at SingTel Analyst Reports.

Relevant links:
SingTel Share Price History,
SingTel Announcements,
SingTel Dividends & Corporate Actions,
SingTel News Articles





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