Singtel confirms talks for Optus stake sale
The search for a minority investor follows a tumultuous period for the subsidiary
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[SINGAPORE] Singtel on Thursday (Jul 30) confirmed that it is in discussions to sell a stake in wholly owned Australian unit Optus, though the Singapore telecom giant cautioned investors that a transaction is far from guaranteed.
Responding to recent media reports, Singtel said that it is engaging with interested parties.
The company reiterated its strategic shift first announced on May 21, when it shared that it was open to bring in a “like-minded local partner” to ensure Optus remains a strong alternative operator in the Australian telecommunications market.
A successful deal would end Singtel’s 25-year run as the sole owner of Australia’s second-largest wireless carrier.
The search for a minority investor follows a tumultuous period for Optus, which has been battered by severe reputational and financial damage.
The subsidiary has faced intense political and regulatory scrutiny following a massive 2022 cyberattack and a catastrophic nationwide network outage last year that disrupted critical emergency services.
In its May disclosure, Singtel indicated that a local partner holding a “meaningful minority stake” could bring complementary expertise to improve service provision, bolster operational resilience and help restore public trust.
Citi Research analysts Arthur Pineda and Luis Hilado in May said that the onboarding of a strategic partner for Optus could “raise further proceeds” if successful.
At the same time, Singtel said that it remained “committed to Australia for the long term”, noting that Optus has been part of the group for more than 25 years.
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Optus recently booked a full-year loss after incurring hundreds of millions of dollars in fines and remediation costs related to its network and security failures.
Singtel said that it will update the market of material developments.
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