SingTel in Talks to Buy Part of Temasek’s Stake in Thai Telecom Firm

http://www.wsj.com/articles/singtel-in-talks-to-buy-part-of-temaseks-stake-in-thai-telecom-firm-1471320814

SINGAPORE—Singapore Telecommunications Ltd. has restarted discussions to buy a portion of Singapore state-investment firm Temasek Holdings Pte. Ltd.’s $2.4 billion stake in one of Thailand’s largest telecommunications companies, Intouch Holdings PCL, according to people familiar with the situation.
SingTel revived talks to purchase the holding from Temasek after exploring a similar deal in 2013. The Thai telecommunications firm, founded by former Thai Prime Minister Thaksin Shinawatra, has been a lightning rod in local...
[Spoil] คลิกเพื่อดูข้อความที่ซ่อนไว้By P.R. VENKAT
Updated Aug. 16, 2016 4:27 a.m. ET
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SINGAPORE— Singapore Telecommunications Ltd. has restarted discussions to buy a portion of Temasek Holdings Pte. Ltd.’s $2.4 billion stake in one of Thailand’s largest telecommunications companies, according to people familiar with the situation.

SingTel has revived talks to purchase a stake in Intouch Holdings PCL, founded by former Thai Prime Minister Thaksin Shinawatra, from state-investment firm Temasek, after exploring a similar deal in 2013.

The stake purchase would further boost SingTel’s presence in Thailand as Intouch owns a 40.6% stake in the country’s largest mobile operator Advanced Info Services PCL. SingTel already holds a 23.3% stake in Advanced Info.

SingTel, Southeast Asia’s largest telecom firm and the biggest company in Singapore by market capitalization, has chased growth across the globe to expand beyond its saturated local market. The company snapped up U.S. managed-security services specialist firm Trustwave for $810 million last year. In 2012, it bought Amobee, a digital advertising firm for $321 million. SingTel owns substantial stakes in several telecom firms across Asia which includes India’s Bharti Airtel Ltd. and Telkomsel in Indonesia.

Thailand is an attractive growth market for telecommunications companies. The country is experiencing increased mobile usage as incomes rise and the economy grows at a steady clip. Mobile phone and data subscribers are expected to increase to more than 88 million this year, which is up 4.4% on year.


China has also been interested in the Thai market. China Mobile Ltd. acquired a 18% stake in True Corp., another Thai telecom operator, for $882 million in 2014.

SingTel is in discussions with Temasek over the exact size of the Intouch stake that it could buy, according to people familiar with the situation. Intouch, which trades on the Thai stock exchange, currently has a market capitalization of $5.9 billion and Temasek owns a 41% stake. The people cautioned that the discussions haven’t been completed and could still fall apart or change.

Thai regulators cap foreign ownership of local telecom firms at 49%.

Intouch has been a lightning rod in local politics after being founded by Mr. Shinawatra. Temasek led a consortium that bought control of the firm, then known as Shin Corp., from Mr. Thaksin and his family in 2006.

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A stake sale of Intouch would give Temasek more cash to invest in technology and newer industries, such as artificial intelligence and life sciences. Last year, Temasek agreed to sell its majority stake in container shipper Neptune Orient Lines Ltd. for $2.4 billion to French shipping giant CMA CGM SA.

Write to P.R. Venkat at venkat.pr@wsj.com
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