Singtel decides against selling Optus, an Australian unit

Singapore Telecommunications (Singtel) denied an alleged $12 billion deal to sell its Australian telecom division, Optus, to Canadian Brookfield, despite a March AFR report.

The largest telecom company in Southeast Asia, Singapore Telecommunications (Singtel), reaffirmed on Wednesday that there was no "impending deal" to sell its Australian telecom division, Optus. Majority-owned by Singaporean sovereign investor Temasek, Singtel refuted an AFR report in March claiming it was selling Optus to Brookfield in Canada for a potential $12 billion deal.

Citing a person with firsthand knowledge of the situation, Reuters claimed that the company was in advanced talks with Brookfield about the sale of a "significant" stake. Singtel's shares fell 3.15% to S$2.46 on Wednesday before trading was suspended in anticipation of a statement. The talks to sell Singtel's 20% share in Optus had reportedly come to an end because the parties could not agree on specific terms related to the pricing and valuation of the potential deal, according to several reports that preceded the suspension.

Singtel's annual report shows that half of its business is based in Singapore and Optus, while the remaining portion is minority investments in telecom companies like Globe Telecom, Telkomsel, and Bharti Airtel. Optus faced backlash from the public in November following a 12-hour network outage that impacted over 10 million Australians. The event led to an inquiry, the firing of Optus's CEO at the time, and a fine of A$1.5 million ($977,100.00).