Temasek sells SingTel stake for USD1 billion

Temasek sells SingTel stake for USD1 billion

In one of the largest block trades in Asia this year, Temasek Holdings on September 25 raised S$1.28 billion (US$1.04 billion) from a selldown of its stake in Singapore Telecommunications (SingTel).
 
The Singapore state’s investment company sold 400 million shares in SingTel at S$3.20 each, which represents a discount of 3.9% to the stock’s close on September 25. The offering was priced at the lower end of S$3.20 to S$3.25 initial guidance. The deal was launched with an option of additional 100 million shares, which did not get exercised.
 
The sold shares represent a 2.5% stake in SingTel. After the selldown, Temasek’s interest in SingTel, the country’s largest telecom company, will fall to 52% from 54.5%, still making the largest shareholder in the company.
 
"As an active investor for the long term, we rebalance our portfolio from time to time,” Temasek  said in a statement. “We continue to be a significant shareholder in SingTel, which remains the largest company in our portfolio.”


SingTel’s shares dropped as much as 5.1% on September 26 after the block trade, but pared some losses to close down 3.9% to S$3.2 per share, the same price as the block trade.


Citgroup and Morgan Stanley were the bookrunners on the sale.