Singtel sells S$1 billion in Gulf Development shares

[SINGAPORE] Singtel has sold 2.8 per cent of its stake in Thailand energy developer Gulf Development for about S$1 billion, it said on Tuesday (Jun 23).

The transaction was executed via a private placement to institutional investors, and will result in cumulative gains of some S$140 million in equity, the group noted.

After the deal, Singtel will still hold a 4.95 per cent stake in Gulf Development valued at an estimated S$1.8 billion.

“Gulf Development’s share price has performed strongly since listing, providing an attractive opportunity for Singtel to crystallise value and reallocate capital towards growth and drive shareholder return,” said Arthur Lang, chief financial officer of Singtel.

The telco received a 7.7 per cent stake in Gulf Development in 2025, following the amalgamation of Intouch Holdings and its largest shareholder Gulf to simplify Singtel’s shareholding in its Thai associate AIS.

Lang emphasised that Thailand remains a key market for Singtel, and the telco will continue having a strong partnership with Gulf Development through its joint investment in AIS and their data centre venture GSA.

Closer to capital recycling target

The transaction is the latest under Singtel’s capital recycling programme Singtel28, which has now unlocked S$6.8 billion.

Announced in 2024, Singtel28 is a growth plan that would shift capital towards the company’s growth areas and raise dividends.

The initial asset recycling target of S$6 billion has since been raised to a S$9 billion mid-term target.

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“Today’s transaction is just one of many levers in our capital management arsenal to consistently return capital to our shareholders and to fund the development of our growth engines,” said Lang.

“This gives us considerable ability to fund and sustain our value realisation dividend, value realisation share buyback as well as digital infrastructure investments, putting us on track to deliver sustainable yield and growth over the coming years.”