SingTel writedown of S$5 billion to S$8 billion on Optus?

Dr Who SG

But while SingTel is seeing strong growth in its mobile units in Indonesia and India, Optus has been struggling amid fierce competition in the Australian market.

Optus booked a 7 percent drop in operating profit for the fiscal first quarter - the three months ended in June.

Right now, it is worth more than S$18 billion in SingTel's books, but Merrill warns that this valuation may not be supported unless there is a significant improvement in earnings at Optus by 2009.

It says SingTel may have to take a writedown of S$5 billion to S$8 billion on the Australian unit.

Merrill even went so far as to suggest that if the numbers did not pick up, SingTel could either shrink its Australian operations or sell Optus altogether.

Taken from

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/229815/1/.html

robertteh SG

It is wise to know one may be lucky only once.

To be lucky again after acquisition in sustaining competitiveness with real efficiency and efforts takes yet another kind of talent which is beyond luck and that is the mark of the real talent and empire builder.

There are not many empire builders out there like the Bill Gate who manages with holistic approaches.

One an empire builder begins to know how to build the empire he will treasure everyone and will not ride roughshod over any one and will treasure all players from the top to the bottom rung.

In our environment, individualism or self-centredness is simply too strong to prevent and interfere with that growth.

reyes SG

is that why LEE SY step down now instead of waiting few years later when more news of singtel bad investment will start to surface?
my god! i hope my conspiracy theory is wrong.

foomwee88 SG

When Ho Cheng left Chartered Ind,the share price dropped from S$15 to S$1.20 now!!!

When I heard the news of LSY going 2 step down in July 2006 , We let go all our 29 lots of Singtel shares.

Do U know how much the Optus shares worth at THE time of purchase?? 7 to 9 billion but our Singtel brought at 19 BILLION!!!!

sINGTEL HAD BEEN WRITTEN OFF 3 BILLION PREVIOUSLY,N NOW 8 BILLION AGAIN 2 GET REAL WITH THE VALUE LAH!!!

GOOD NEWS 2 SPOREANS, 11 billions $ llost to Spore is ok lah!!!same as Prince J of Brunei playboy style to man the company .

We r so rich,mah!!!!

shade343 SG

Why is this in speaker’s corner? It should only concern shareholders of Singtel. And since when did businesses always have to make money? Risk is the keyword here.

Dr Who SG

Because SingTel shares.....majority still in govt hands....meaning your money, my money....

Only a small proportion of SingTel shares is traded in stockmarket. The rest is still with Govt investment (GIC)

http://en.wikipedia.org/wiki/Government_of_Singapore_Investment_Corporation

http://findarticles.com/p/articles/mi_m0FGI/is_6_14/ai_104729483

Atobe SG

In the Financial Year ending March 2006, SingTel had reported that its Australian Optus operation had suffered a setback in profits of 8.5%.

Yet in the Financial Year ending March 2005, it carried a glowing report of 8.8% growth in operating revenues to A$7.0 billion - due largely to targetted mobile market segments.

Singapore takeover of Optus in 2001 for a sum of A$17.2 billion was the biggest in Australia corporate takeover history, and market watchers were questioning the wisdom of this takeover - that had also the serious concern from the Australian community concerning the Defence related issues included in Optus portfolios.

Market watchers had reported that SingTel had paid a 'premium of over A$5 billion' to acquire Optus - was it worth the trouble ?

Where did the funds to this acquisition come from - when it was known that 'SingTel was cash rich with US$3.7 Billion' ?

Part of the funding in this takeover was reported to be from borrowing for a sum of A$3 billion - did the balance come from "Papa" at the helm of GIC - the supposed guardian of Singapore's Reserves ?

Now that share values are spiralling downwards, have these loans been paid to the respective lending institutions ?

Will the Singapore Reserves be affected - again ?

foomwee88 SG

Originally posted by Atobe:

In the Financial Year ending March 2006, SingTel had reported that its Australian Optus operation had suffered a setback in profits of 8.5%.

Yet in the Financial Year ending March 2005, it carried a glowing report of 8.8% growth in operating revenues to A$7.0 billion - due largely to targetted mobile market segments.

Singapore takeover of Optus in 2001 for a sum of A$17.2 billion was the biggest in Australia corporate takeover history, and market watchers were questioning the wisdom of this takeover - that had also the serious concern from the Australian community concerning the Defence related issues included in Optus portfolios.

Market watchers had reported that SingTel had paid a [b]'premium of over A$5 billion' to acquire Optus - was it worth the trouble ?

Where did the funds to this acquisition come from - when it was known that 'SingTel was cash rich with US$3.7 Billion' ?

Part of the funding in this takeover was reported to be from borrowing for a sum of A$3 billion - did the balance come from "Papa" at the helm of GIC - the supposed guardian of Singapore's Reserves ?

Now that share values are spiralling downwards, have these loans been paid to the respective lending institutions ?

Will the Singapore Reserves be affected - again ?

[/b]

I think this time economic crisis will start from Spore instead from THailand!!!

Embarassed

foomwee88 SG

My advice in July 2006,throw st shares!!!

It will drop 2 S$ 0.25 very soon!!!!

shade343 SG

I think you are wrong. Majority of Singtel shares are held by Temasek Holdings and not the GIC. Temasek owns approx 54.27% of singtel.

GIC does not own any shares in Singtel.

Singtel's free float is more than 10% and lots of people trade it on the stock market.

Temasek Holdings is run by an independent board. Although it is 100% owned by the MoF.

Since it is run by an independent board, the government actions does not influence its decisions.

dragg SG

you actually believe this?

mai gong lah.

shade343 SG

talk cock lah. It will never hit the price you mention. Rolling Eyes

shade343 SG

FYI, this info came from the Annual report of Singtel 05/06.

If you dont believe this, are you saying there is no corporate governance in Singapore?

Rolling Eyes

dragg SG

of course i believe what is written in the annual report.

Dr Who SG

Ministry of Finance owns Temasek, who holds majority shares in SingTel.

So who is the owner of Ministry of Finance? Citizens of Singapore....correct? wrong?

So ultimately.........whose money?

seancannot SG

Is LSY going to get away just like that ?????

dragg SG

ultimately our govt control temasek which controls the GLCs which control the economy which control singaporeans working in singapore.

foomwee88 SG

Mind my words,little boy!!!

Chatered Ind share was traded at S$15 when Ho Cheng was in chareged!!!
How much now!!!S$1.22 yesterday.

prince Jeff of Brunei sold the entire company 4 his womanizer's habit n till now the whole Brunei is still bleeding !!!!10 yrs till now Civil Ss get their first increment of salay in 2006 since 1997!!!

Poor Sporean, it is better learning from history n with an analytical mind!!!

mistyblue SG

INDEPENDENT BOARD?????

Laughing

GOOD JOKE!!!!!!!!!!!

mistyblue SG

Before he gets implicated....

Same for GCT wife in NKF case.. Suddenly she had nothing to do with NKF....