We mentioned previously that Telkom is forcing Singtel to sell its 35% stake in Telkomsel.
Telkomsel contributes 14% to overall post tax profits.
It turns out that Telkom reported yesterday that Singtel may be willing to sell:
Telekomunikasi Indonesia, the nation’s biggest telecom firm, said on Wednesday that Singapore’s Singtel (STEL.SI) is willing to sell its 35% stake in its mobile unit Telkomsel, according to Reuters.
The plan to buy back the stake, initiated by the government and approved by shareholders in Telkom’s annual meeting on May, comes as Telkom struggles to boost profits in a once-fast growing mobile market that is now seeing heated competition.
Whether this is a good deal or not will have to depend on the sale price. Will Singtel be able to get at least SGD 10 billion out of this?
SingTel is listed on InvestmentMoats.com’s Dividend Stock Tracker.Dividend Stock Tracker tracks top dividend income stocks listed on SGX stock exchange. Do follow my Dividend Stock Tracker which is updated nightly here.
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