SingTel receives $1.1b in cash for Netlink Trust IPO
Total proceeds from the sale of its stake in NetLink hit $2.2b.
SingTel pops the champagne after it received $1.1b in cash after it sold its 75.01% stake in NetLink Trust.
According to UOB Kay Hian, the shareholder loan of $1.1b has also been repaid.
Singtel's book cost for 100% of NetLink is only S$265m.
Singtel would also recognise a divestment gain of $1.9b, including the release of unamortised deferred gain in 2018.
The total proceeds of $2.2b will go to investing in its core businesses, new business opportunities, debt payment and capital management initiatives.
UOB said the special dividend related to NetLink NBN Trust’s IPO could be up to a maximum of 13.8 cents.
"The board would deliberate on the potential special dividend together with the interim dividend when Singtel releases its 2QFY18 results in mid-November," UOB added.