Singapore Telecommunications’ (Singtel’s) wholly-owned subsidiary, Amobee Group, has entered into a sell and purchase agreement (SPA) to sell all of its equity interest in Amobee Asia, Amobee, Inc. and Amobee ANZ to Tremor International.
The sale follows the announcement made on May 27 that Amobee had been classified as a subsidiary held for sale from March 31.
The divestment will exclude the email solutions business of Amobee, Inc., which will be reorganised and carved out of Amobee, Inc. and transferred to Amobee Group or its nominee prior to closing.
The divestment will be at an enterprise value of US$239 million ($331.4 million). The estimated net cash proceeds after deducting transaction costs is expected to be at US$197 million at closing.
The carrying value of Amobee Asia, Amobee, Inc. and Amobee ANZ as of March 31 was US$160 million.
Back in May 2021, Singtel has already written down the value of Amobee by $589 million. Singtel acquired Amobee a decade ago for US$321 million as part of its broader push to grow a wider portfolio of business.
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According to Singtel, the divestment will allow the telco to “reshape its portfolio to ensure optimal allocation of resources towards new growth drivers, as well as improve shareholder value”.
The divestment is expected to be completed by September.
Following the divestment, Singtel will cease to hold any equity interest in the Amobee business, except for the email solutions business retained by Amobee Group.
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The financial impact from the divestment is not expected to be material for the Singtel group.
Shares in Singtel closed 3 cents lower or 1.13% down at $2.62 on July 25.
