SingTel

[swakoo]

Interesting news from land down under. It appears TPG and Telstra (Singtel Optus' competitors in Aust) may have covered up a Triple Zero death (a TPG customer) just 6 days after the Optus outage in Sept. Recall that both the Sg and Au PMs made comments on the Optus outage during PM Wong's recent visit to Aust. And now this revelation.

[weijian]

Another announcement by a GLC to be more capital efficient. Dividend has materially almost doubled since few years back and it continues to divest assets to return the capital to shareholders. And then the shareholder (in this case Temasek) will decide how to redeploy the capital to grow elsewhere.

I think it is more than this.

In this interesting recent interview with Singtel CFO, Arthur Lang, the interviewer calculates the ~27% Singtel's stake in Indian telco, Bharti Airtel, to be worth around $50 bil and confirmed by the CFO (based on recent sale of 0.8% stake for $1.5 bil). CFO discloses that based on mkt cap, Singtel's stakes in all the regional associates (Bharti Airtel, Thai AIS, Indonesia Telkomsel, Phil Globe) add up to about $75 bil. Meanwhile Singtel mkt cap is about $80 bil. Implying that Sg telco biz, NCS, Nxera data centres and Aust Optus is worth only about $5 bil!

The huge discrepancy is what is called holding company discount. Not mentioned in interview but investors prefer to invest directly than via a holding company for transparency reasons. The value realisation share buyback and value realisation dividend are essentially attempts to improve transparency and reduce the holding co discount.

Hi swakoo,

Singtel's regional associates "Airtel, AIS, Globe and Telkomsel" are classified under "Joint Venture" on its balance sheet. Based on note24 (or page 198 of AR25 for year end March2025), it is equity accounted based on "cost" + "share of profits/loss" - "declared dividends" - "translation gain/losses (FX)" - "goodwill impairment" (which isn't reversed). The total value of this 4 regional associates is recorded as 12.2bil on the balance sheet and note24 also provided some "interesting" information below (in italics):

The market value of the quoted equity shares in joint ventures held by the Group was S$58.91 billion (31 March 2024: S$42.20 billion). 

Therefore, it isn't exactly that much of a revelation.  But of course, I suppose many more people watched the video than read note24.

In general, I would guard against using "liquidation value" for valuing companies unless they are "in play" (or have the reasonable chance to be "in play"). But this video actually reveal a very important point - that these top Singtel honchos have a "share price target" sort of KPI. And with that, I suppose liquidation value becomes more relevant than not, compared with companies that parrot "we cannot control share price bla bla bla" talk.

[swakoo]

Therefore, it isn't exactly that much of a revelation.  But of course, I suppose many more people watched the video than read note24.

Hi weijian, yes not much of a revelation to people like u who read the AR in such great detail! But a revelation to the rest of us.

In general, I would guard against using "liquidation value" for valuing companies unless they are "in play" (or have the reasonable chance to be "in play"). But this video actually reveal a very important point - that these top Singtel honchos have a "share price target" sort of KPI. And with that, I suppose liquidation value becomes more relevant than not, compared with companies that parrot "we cannot control share price bla bla bla" talk.

In theory i agree.

But note that Singtel has been paring off small stakes of Bharti Airtel and will continue to do so until it matches the same holding as the Sunil Mittal family, ~22%. The amount is very significant as it is a sizeable stake in a very huge and growing effectively duopoly market that has very low current ARPU and very low fixed broadband penetration. Think about $5bil so far and probably more than $8bil more to go. This is equivalent to "partial liquidation" with proceeds going to VRD and VRSB (increasing dividend returns to shareholders) and to fund new growth engines like high performance AI-ready data centres which form the digital backbone of the modern economy (potentially increasing future dividends).

Also if u are old enough, u will probably remember the local and foreign shares of banks, SPH, SIA in the old days. With local at big discount to the foreign, even though the exact same company. When they merged eventually, plenty of profits were reaped by savvy holders of local shares. The holding co discount is not exactly the same but somewhat analogous if u think about it. A potential reduction in discount could instead perhaps come about if the directly held new growth engines (digital services and infrastructure, funded by selling small stakes of regional associates) become much bigger than the regional associates. As the indirect holdings become reduced.

Another way to think about it is that part of the discounted regional associates (discounted from viewpoint of Singtel share price) is being sold without discount (at associate holding market price), to fund new growth engines that will hopefully yield increasing future dividends.

[swakoo]

Breaking news that could transform Singtel into an undisputed heavyweight of data centers in Asia, rivaling global giants like Equinix.

Singtel, KKR near deal to acquire majority stake in STT Global Data Centres in deal valued at $13 bil: WSJ

Sun, Feb 01, 2026 • 11:20 AM GMT+08

Singtel and KKR are nearing a deal to buy ST Telemedia Global Data Centres in a deal that values the assets at more than $13 billion, according to the Wall Street Journal.

Talks are at a very advanced stage, and an announcement could be made soon, according to the Journal, citing "people familiar with the matter".

ST Telemedia, the parent company which is itself a Temasek unit, now owns 80% of STT GDC, with the KKR-led group holding the rest.

Back in 2024, Singtel and KKR had acquired a stake of 18.3% in 2024 for about US$1.3 billion. KKR holds the bigger share at 14.1% while Singtel holds 4.2%.

Singtel is majority held by Temasek too. When asked, a Singtel spokesperson declined to comment for now.

According to its website, STT GDC has more than 100 data centres worldwide, with a combined capacity of more than 2.3 GW.

[swakoo]

The suspense continues...

CLARIFICATION REGARDING MEDIA ARTICLE

Singapore Telecommunications Limited (“Singtel”) refers to the article, “KKR-Led Group Set to Buy Singapore
Data-Center Firm Valued at Over $10 Billion”, which was published by The Wall Street Journal on 1 February
2026 SGT.

As mentioned in our announcement dated 7 November 2025, Singtel regularly explores and reviews business
opportunities, projects and proposals relating to its business and investments. Singtel, as part of a consortium,
continues to have discussions in relation to STT GDC Pte. Ltd. While these discussions are at an advanced
stage, there is no certainty that such discussions will lead to any definitive or binding agreement. Singtel will
make an announcement if and when there are any material developments that warrant disclosure in accordance
with our obligations under the Listing Manual of the Singapore Securities Exchange Trading Limited.

Investors in Singtel securities should exercise caution in their review of any media reports relating to potential
transactions involving Singtel ahead of any definitive announcements by Singtel when dealing with Singtel
securities.

Issued by Singapore Telecommunications Limited on 1 February 2026.

[swakoo]

Sg Home Team is working with Singtel using AI to enhance our safety:

HTX and Singtel Group deepen partnership to strengthen Singapore’s public safety capabilities

Singapore, 1 February 2026 – HTX (Home Team Science and Technology Agency) and Singtel today announced the renewal and expansion of their Strategic Partnership for Innovation (SPI) Master Agreement, deepening their technological collaboration to strengthen Singapore’s public safety capabilities.

Under the five-year agreement, two Singtel Group companies, Singtel Singapore and Digital InfraCo, will work closely with HTX to enhance the resilience, performance and security of Home Team systems through the development of next-generation technologies, including artificial intelligence communications technology, network services and cyber security.

HTX and Singtel share a strong commitment towards harnessing innovation to support Singapore’s public safety mission. As part of their collaboration, HTX has co-developed and deployed network slicing capabilities with Singtel Singapore to minimise the impact of network congestion on Home Team officers during major operations and events. Moving forward, the Singtel Group will support HTX in optimising its network operations through data-driven insights, expand secure communication capabilities, and strengthen operational intelligence with AI-enabled solutions.

To support HTX’s growing AI requirements, RE:AI, the AI cloud service of Singtel Digital InfraCo, will provide secure and high-performance AI infrastructure for public safety use cases. RE:AI will enable latency-sensitive applications while ensuring sensitive data remains within trusted local environments. RE:AI will also support HTX in rapidly prototyping and deploying AI use cases in a more cost-effective manner. These capabilities will augment the work of Home Team officers by enabling faster response times, better-informed decision making and sustained operational readiness amid an increasingly complex security environment.

Mr Ng Tian Chong, Chief Executive Officer, Singtel Singapore, said, “Safeguarding Singapore requires staying ahead of fast-evolving technologies and increasingly sophisticated threats. This partnership reflects our shared commitment to strengthen the nation’s digital resilience. By bringing together HTX’s deep domain expertise and Singtel’s capabilities in advanced connectivity, AI and security, we are equipping those who protect Singapore with stronger tools, sharper insights and greater operational agility. Ultimately, this collaboration supports a safer and more secure Singapore in the digital age.”

Mr Bill Chang, Chief Executive Officer, Digital InfraCo, Singtel, said, “Technology that is both trusted and sovereign is critical to safeguarding public security. We are uniquely able to deliver this through our sovereign AI cloud built on our secured digital infrastructure, giving HTX full control to run their most critical, real-time applications with confidence. Our partnership with HTX will help propel AI innovation and the development of AI capabilities at speed and scale to enhance the safety and security of our nation.”

Mr Chan Tsan, Chief Executive, HTX, said: “Our partnership with Singtel will help ensure the Home Team is equipped with advanced network connectivity solutions, cybersecurity tools and AI infrastructure to support its operations. This partnership is strongly aligned with our vision of building an AI-enabled Home Team to make Singapore the safest place on Earth. Given the complexity and evolving nature of the public safety landscape, it is imperative for HTX to work closely with trusted partners like Singtel to harness innovation and develop technological capabilities to enhance the safety and security of the nation.”

[swakoo]

Significant piece of news for Singtel as Bharti Airtel is a key contributor to it's profit and war chest.

Trump Announces Trade Deal With India to Reduce Tariffs

By Erica L. Green, Tony Romm and Ana Swanson
Feb. 2, 2026
Updated 7:37 p.m. ET

President Trump said on Monday that the United States had reached a trade agreement with India that would reduce some of the punishing tariffs the United States had placed on Indian imports.

The deal, as Mr. Trump described it on social media, would roll back some of his tariffs in return for India dropping its tariffs on some American goods and ceasing purchases of Russian oil.

The agreement included few details beyond the United States lowering its tariff on India’s export to 18 percent. Mr. Trump had raised tariffs on Indian products to 50 percent following troubled bilateral negotiations last year.

The arrangement appeared likely to defuse some of the tensions between the United States and India. The tariffs have hurt India’s attractiveness as a manufacturing hub, particularly for companies that have tried to move factories out of China. Analysts said the deal would reverse that dynamic and help to pull India back into a strategic alliance with the United States.

[swakoo]

Full acquisition finally announced by Singtel this morning:
Singtel & KKR Acquisition of STT GDC 4 Feb 2026

Singtel/KKR top DC dog in APAC (ex China). With slides showing a lot more DC opportunity in APAC (and esp SEA) than in North America, with EU in between. So besides DC type (training, inference, hi perf AI, soc media, etc), location matters too.

Terms of deal also matter:
DBS maintains $5.71 target price for Singtel following acquisition of STT GDC with KKR

2 days earlier before final announcement:
RHB: Closing in on STT GDC; keep buy at 5.20

Analysts' calls for reference only.

[swakoo]

Singtel's cash cow, Bharti Airtel, reported latest qtrly results yesterday:
Bharti Airtel's quarterly profit rises 34% on India subscriber growth, upgrades

Strong results from both India and Africa, which should feed thru to Singtel's qtrly biz update later this month.

[swakoo]

Qtrly biz updates out this morning, earlier than expected, thought would be after CNY:
slides
more details

My take:

No churn in Optus in spite of media fear mongering following outages last year.

Sg telco biz still cut-throat, even hurting Starhub. Guess regulator needs to approve Simba takeover of M1, reducing to 3 MNOs, otherwise existing 4MNOs ongoing price war will result in not having capital to keep abreast of techology.

Growth engine, asset lite NCS continues firing well with margin expansion.
Other growth engine Nxera DCs starting to show up.

Airtel continuing to contribute strongly, as hinted in previous post.
Ditto for AIS in spite of turmoil in Thai politics and border war.
Telkomsel showing signs for recovery after reducing to 3 MNOs mid of last year.