SingTel - Maybank Research 2024-08-12: 3% Share Price Correction ~ Much Ado About Nothing?

- Read this at SGinvestors.io -

In 2021, Optus sold 70% stake in its towerco to AustralianSuper and leased back with a committment to lease 565 new towers. The report alleged AustralianSuper has failed to build the hundreds of new towers, which could result in penalties for the towerco.

Optus tower dispute – Singtel could be net beneficiary

• - Read this at SGinvestors.io -
• Assuming half of the new towers are not delivered and a penalty rate of ~10% (as a % of tower rental), we estimate it could lead to a post-tax annual penalty payment to SingTel of S$7m or 0.2% earnings accretion pa. As such, we see the development as being largely non-material and the correction of SingTel share price is a buying opportunity.

Optus is shaping up well – consumer followed by enterprise

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Hussaini Saifee Maybank Research | https://www.maybank-ke.com.sg/ 2024-08-12 SGinvestors.io

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