A Singapore Telecommunications (Singtel) logo is displayed outside the company’s building in Singapore on February 12, 2016.
Roslan Rahman | AFP | Getty Images
Singtel, Southeast Asia’s biggest telecommunications operator, has sold a 2.8% stake in Thai energy giant Gulf Development for about S$1 billion ($772.9 million), as the company looks to free up funds for fresh investments.
The shares were placed directly with institutional investors and are expected to deliver an equity gain of roughly S$140 million, Singtel said in a statement Tuesday.
After the sale, Singtel will continue to hold a 4.95% interest in Gulf Development, a stake valued at approximately S$1.8 billion.
“This divestment underscores Singtel’s concerted efforts to optimize our portfolio as we continue our disciplined approach to capital management,” said Arthur Lang, the company’s group chief financial officer.
Lang added that Singtel’s relationship with Gulf Development remains strong, noting that Thailand continues to be a key market for the telecom group.
The sale comes as Singtel ramps up spending in areas it has identified for growth. The company expects capital expenditure to total about S$3 billion in the current fiscal year, compared with S$2.5 billion the year before.
“1.2 billion are really earmarked for growth into data center into AI, which is our GPU as a service for the region, and in particular providing sovereign AI services for Singapore,” Singtel CEO Yuen Kuan Moon told CNBC’s “Squawk Box Asia” in May.
Singtel’s shares last traded 1.38% lower at 4.30 Singapore dollars.
