SingTel pulls the plug on sale of Optus Satellite unit

|By:, SA News Editor

Singapore Telecommunications (SGAPY.PK -1.2%) has decided to forego selling its Optus Satellite unit, which it acquired in its $9.69B purchase of Australia's Optus back in 2001.

CEO Chua Sock Koong: "The outcome of the review is that it would create the most value if we continue to keep ... and to invest in the business."

The company wanted more than $1.8B for the unit. Intelsat (I -2%) and a consortium made up of Blackstone, TPG Capital, and Mayalysia's MEASAT Global reportedly submitted bids last week. A source states the consortium was not willing to make an offer above $1.7B.

UOB Kay-Hian analyst Jonathan Koh: "SingTel’s management, they feel that it’s a strong and attractive business ... The margins are very high but the direct synergies are very minimal."