Singtel denies Optus sale reports

Source: Optus

Singapore’s Singtel halted trading of its shares today after being forced to deny reports of negotiations to sell Australian operator Optus that had then broken down.

A report in the Financial Review had suggested Singtel was in advanced talks to sell the Australian operator to Canadian private equity outfit Brookfield for A$16 billion.

Subsequent press reports said the deal had fallen through. Singtel’s shares fell sharply, prompting the halt to trading.

Singtel advised shareholders “and potential investors” to “exercise caution in their review of any media reports relating to Optus in the absence of any definitive announcements when dealing with the shares of the company”.

The Singapore-based operator said it “regularly conducts strategic reviews of our portfolio including Optus to optimise the value of our assets and businesses and will explore all options to maximise shareholder value” but reiterated that “there is no impending deal to divest Optus which remains a strategic and integral part of the Singtel Group”.

Optus has had a difficult couple of years. In November, the operator suffered a massive network outage that left some 10 million of Australia’s 26 million population without access to phone or internet connections for 14 hours and exposed the company to legal challenges after a number of customers were unable to call the emergency services.

The operator’s CEO, Kelly Bayer Rosmarin, subsequently resigned.

The network outage came after a large 2022 data breach that also dented consumer confidence.