Singtel: Scaling Back On Airtel

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About: Singapore Telecommunications Limited (SGAPY), Includes: BHRQY
by: JP Research
This article is exclusive for subscribers.
JP Research
Long/short equity, Growth, long-term horizon, macro
Summary

Singapore Telecom will dilute its effective stake in Bharti Airtel after not subscribing to its full allocation in the associates pending rights issue.

A highly competitive market for Bharti Airtel and recent losses may have prompted management to reduce the potential impact of further losses.

... while still maintaining exposure when fortunes there are expected to improve.

Dividend guidance is maintained despite the funds needed to fund the share purchases - this is important in the Singapore telecoms sector.

Call for shares has been diverted elsewhere

Singtel (OTCPK:SGAPY)/ ("STEL") is the second-largest — measured by market capitalization — company listed on the Singapore Stock Exchange. In its home market, it's an Internet