SingTel (Buy, TP: SGD 4.4, +80%) SingTel divests Trustwave: Our Take
SingTel announced the full divestment of its 98% equity stake in Trustwave to MC2 Titanium for US$205m. Because of losses at Trustwave, we think the EPS accretion impact is 4-5%, so despite a likely non-cash writedown we would see this as a positive transaction, and closes the door on a poor investment strategy embarked on by previous management to diversify into higher growth areas. Our full take below.Singapore Telecommunications is engaged in the operation and provision of telecommunications systems and services, and investment holding. Co. provides a range of multimedia and Information and communications technology solutions, including voice, data and video services over fixed and wireless platforms. Within both Singapore and Australia, Co. provides mobile communications, data and Internet, national telephone, information technology and engineering, sale of equipment, international telephone and pay television. Co.'s key businesses include: Group Consumer, Group Digital L!fe, and Group Information and communications technology.
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