Brokers' take

Singapore Telecommunications | Hold (Downgrade)

Aug 19 close: S$4.19

Target price: S$4.41

Maybank Kim Eng, Aug 18

Singtel is proposing to buy 21 per cent of Intouch and 7.39 per cent of Bharti Telecom (BTL) from Temasek for S$2.47 billion.

Temasek does not appear to be short changing Singtel.

First, the new shares will be issued at S$4.16, a decent price close to the peak.

Second, see-through values of AIS/Airtel are also decent relative to our analysts' fair values for these stocks.

Third, the acquisition of more equity in AIS & Airtel is not inconsistent with Singtel's long-standing message that it is happy to buy more at the right terms and conditions, a…