SingTel - UOB Kay Hian 2024-07-18: Early Progress In Driving Shareholder Value & Its Growth Engines.

• In line with its Singtel28 growth plan, SingTel made several announcements that are set to drive shareholder value, and also doubled down on its future growth drivers such as its data centres.
• - Read this at SGinvestors.io -

Intouch associate: Simpler & leaner.

• SingTel announced that the group’s associate, Intouch Holdings (Intouch), is set to enter an amalgamation agreement with Intouch’s largest shareholder, Gulf Energy Development (GULF) which would result in a new public company (NewCo).
• SingTel’s current 24.99% ownership of Intouch implies that Singtel is set to own 9.08% of NewCo post amalgamation, receive a special dividend of S$135m and book an exceptional gain of S$400m in FY25.
• - Read this at SGinvestors.io -
• SingTel already owns 23.3% of AIS, and intends to participate in the VTO as an offeror. Based on the agreement, the first 5% of tender shares would be allocated to SingTel, the subsequent two 5% portions to Intouch and GULF respectively and the remaining 21% to be equally split amongst the three parties with SingTel not acquiring more than 10%.
• The amalgamation is expected to be completed in 2Q25 (1QFY26) and management noted that this deal would not have any impact on dividend policy. SingTel also intends to fund the VTO with internal cash and loans which would amount to S$2.4b for 10% of AIS shares.

A positive deal.

• Read more at SGinvestors.io.

Chong Lee Len UOB Kay Hian Research | Llelleythan Tan Yi Rong UOB Kay Hian | https://research.uobkayhian.com/ 2024-07-18 SGinvestors.io

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