SingTel Weighs IPO Option for Optus Satellite Following Low Bids
By Tai Nichols | August 8, 2013
Tags: Telecommunications, IPO, Satellite
Publication: Bloomberg.com
Publication Date: 08/08/2013
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The SingTel headquarters in Singapore.
Image credit: Wikimedia Commons |
Due to lower-than-expected bids for the business, Singapore Telecommunications (SingTel) is contemplating an initial public offering (IPO) of Optus Satellite, its Australian satellite unit. The company is seeking more than AU$2 billion ($1.8 billion) for the unit, which would make it the biggest telecommunications deal in Australia in more than a decade.
Intelsat, a worldwide provider of satellite services, made final-round offers for Optus Satellite. In addition, reports indicate that bidders such as Measat and private-equity firms KKR & Co. and Bain Capital withdrew, believing Optus Satellite’s earnings potential do not justify the price tag.
SingTel bought the Australian Satellite business as part of the AU$9.69 billion takeover of Optus in 2001. In early 2013, SingTel said it was considering options for Optus Satellite. The company has not reported separate earnings figures for the unit since the 2001 takeover.
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