Singtel weighing options for Australia Optus fibre assets, sources say

[HONG KONG] Singapore Telecommunications Ltd is considering options including a potential stake sale in the fibre assets of its Australian subsidiary SingTel Optus Pty, people familiar with the matter said, of a deal that would follow last year's disposal of its mobile phone towers unit.

Singtel, as the Singaporean phone-services provider is known, has held talks with potential advisers to prepare for a strategic review of the Australian fibre business, the people said, asking not to be identified because the information is private.

Options for the assets, which could be worth a few billion dollars, include a potential stake sale, partnership with an investor or a sale and lease back, the people said. Deliberations are preliminary and there is no certainty that the review will lead to a transaction, the people said.

A representative for Singtel declined to comment. A deal would help Singtel raise cash and boost growth amid increasing investor demand for digital infrastructure businesses, the people said. In October, the company sold a majority stake in the mobile phone towers unit of Optus to pension manager AustralianSuper Pty for about A$1.9 billion (S$1.9 billion).

Singtel, which offers mobile, broadband and TV services as well as business-oriented solutions for companies, has a presence across Asia, Australia and Africa. In the half year ended Sep 30, Singtel's earnings before interest, tax, depreciation and amortisation rose 1 per cent to S$1.93 billion; its revenue grew 3 per cent to S$7.65 billion. In Australia, Optus reported Ebitda climbed 5 per cent, boosted by its mobile business.

BLOOMBERG