Optus deal stays in shadows
Rumours abound of a looming Optus sale.
Singtel, a leading telecommunications group, is reportedly in advanced discussions to sell Optus, Australia's second-largest telecom company, to Brookfield, a global private equity firm based in Toronto.
This potential deal, valued between $16 billion and $18 billion, signals a significant shift in the telecom landscape, given Optus's challenges, including a major cyberattack and a nationwide network outage that left the company reeling.
Despite Singtel's attempts to downplay rumours of the sale, stating that “there is no impending deal to offload Optus for the said sum”, the market's reaction suggests otherwise.
Singtel shares surged following the news, indicating investor belief in the potential divestment.
This move could represent a strategic pivot for Singtel, focusing on revitalising its core operations after Optus's recent setbacks, including a $61 million hit from the network outage.
Optus, with its 10.5 million mobile customers and a modest increase in mobile service revenue despite the outage, remains a major player in Australia's telecommunications sector.
However, the prospect of Brookfield's acquisition raises questions about regulatory scrutiny, given Optus's importance to Australia's critical infrastructure.
This potential sale highlights the volatile nature of the telecom industry, where companies must navigate technological challenges, regulatory scrutiny, and the ever-present threat of cyberattacks.
For Singtel, offloading Optus could be a chance to reset and focus on growth areas, while for Brookfield, this acquisition could bolster its telecommunications portfolio, already significant with assets like the 13,000 towers acquired from Reliance Jio in India.