Singtel shares dip over 1% amidst Optus stake sale reports

Singapore Telecommunications (Singtel) experienced a more than 1% decline in shares on Thursday during early trading, following reports of advanced negotiations regarding the sale of a substantial stake in Australian telco Optus to Canada’s Brookfield Asset Management.

This news emerged subsequent to Singtel dismissing an article in the Australian Financial Review (AFR) on Wednesday, which claimed the potential sale of Australia’s second-largest telecommunications group in its entirety for up to A$18 billion ($11.93 billion).

Singtel’s shares dipped by 0.8% most recently, after an earlier decline of 1.6% during the session. The previous day, the shares had surged by nearly 4%.

Regarding the reports of a stake sale, Singtel did not respond to a request for comment from Reuters on Thursday. Brookfield opted not to comment on the matter.

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According to a Reuters report on Wednesday, citing a source with direct knowledge, Singtel is engaged in advanced discussions with Brookfield over a “significant” stake sale.

In response, SingTel emphasized on Wednesday that Optus remains an integral and strategic component of the group, highlighting its long-term commitment to Australia.

This development follows Optus’s facing public criticism back in November due to a 12-hour network outage impacting over 10 million Australians. The incident led to an investigation, the resignation of Optus’ CEO, and an A$1.5 million ($990,900) fine.