This tranche of shares, equivalent to 2.78% of Gulf Development's total capital, is 36% of what Singtel now owns. On completion of the sale, Singtel's stake in Gulf Development will be reduced from 7.73% to 4.95%.
Sachin Mittal of DBS Group Research has maintained his "buy" call on Singapore Telecommunications and target price of $5.46 after news that it has put up a third of its stake in an associate in Thailand for sale, potentially fetching proceeds of some $1 billion.
According to Mittal, Singtel is offering 416 million Gulf Development shares for sale at an indicative price range of Bt58.80-60.00, implying a discount of 2-4% to Monday's closing price of Bt61.25.
