May 14, 2009
Singapore Telecommunication has said, it is keenly eyeing acquisitions after warning that revenue growth in its home market would slow down, due strong Singapore dollar.
Singtel earlier posted a 17 percent drop in quarterly net profit, which is much smaller than expected.
Facing a saturated domestic market of just 4.8 million people, SingTel has spent Singapore 18 billion dollars to invest in countries such as India, Indonesia, and in the bigger Australian market. Revenue growth in Singapore is expected to slow to single digits in the year to March 2010, the company said.
Singtel did not elaborate on the targets or markets where it is eyeing acquisitions but pointed on Thursday to Pakistan as a mobile market it expected consolidation. SingTel already owns a 30 percent stake in Pakistan’s Warid Telecom.
Reportedly, Singtel is already in talks with Dhabi Group for sale out of more stakes of Waridtel. Previously, China Mobile also tried its luck to acquire Warid, as a whole entity; however, the deal didn’t go through.
Currently, market sources have confirmed us that Singtel-Dhabi Group deal is likely to happen before June 2009, while we know that Mr. David Lee of Singtel has already taken charge as CCO of Warid Telecom.
A senior Warid Telecom official while speaking with us said that it’s not confirmed yet, but if happens, this deal will play positive for the industry.
Market experts are also looking forward to such a acquisition, which will get Warid into a strong position, especially in a scenario when 3G license is going to be auctioned soon.
Download Singtel’s Financial Report for 2009 here (PDF file – 740 KB)