Approval needed
The deal also requires approval from SingTel's shareholders, the Australian Foreign Investment Review Board, the Info-communications Authority of Singapore, the Singapore Exchange and the Australian Stock Exchange.SingTel and Optus have been in talks for the past six months, said SingTel CEO Lee Hsien Yang. Lee was speaking to reporters via video conference from Australia.
At a press conference this morning, SingTel chairman Koh Boon Hwee said the acquisition is expected to be concluded in four months.
SingTel, he said, would seek an ASX listing if it acquires 100 percent stake in Optus (as the latter would have to be de-listed).
Commenting on the benefits of the deal, Koh said: "SingTel has identified substantial growth opportunities in (the combined) mobile business, from enhanced roaming and wireless enterprise solutions for corporates to content development."
Additionally, cost reduction in product development and procurement, particularly in the areas of new content and 3G network development can be realised, he added.
There are also opportunities to maximize its (mobile) partnership with the Virgin Group, which will become SingTel's partner in Australia, Singapore, Hong Kong, Taiwan and other markets in Asia, SingTel said in a statement.
The combined SingTel-Optus entity would boast a market capitalization of about US$24 billion, SingTel said.
