Singtel hires three banks for share sale of fibre broadband unit

SINGAPORE (Feb 9): Singapore Telecommunications, the city-state’s largest phone company, said it has hired three banks as it prepares for an initial public offering to divest more than 75% of its wholly-owned fibre broadband network unit NetLink Trust.

Morgan Stanley, UBS Group AG and DBS Group Holdings are the advisers on the share sale, Singtel Chief Executive Officer Chua Sock Koong said at a briefing on Thursday. The company said it’s too early for details on the size or pricing of the proposed offering.

Singtel intends to meet the April 2018 deadline set by the regulator to reduce its stake in NetLink Trust to less than 25%, the company said. It may use the proceeds from the share sale for capital management and investments, and could return any excess capital to shareholders, Chua said.

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