In today’s briefing:
- Optus Sale Would Be A BIG Payday For SingTel
- STI REIT Sector Weight to Return to ~13% with Frasers Centrepoint Trust Inclusion
Optus Sale Would Be A BIG Payday For SingTel
- Reportedly (AFR), Singtel (ST SP) is in advanced talks to sell Optus, Australia’s second-largest telco, to Brookfield for A$16bn-A$18bn.
- SingTel quickly countered there is no impending deal; and “Optus remains an integral and strategic part of the Singtel Group and we are committed to Australia for the long term.”
- Optus’ EBITDA in 3Q24 and 9M24 fell 1.8% and 8.3% in S$ terms. Extrapolating out for FY24E suggests pricing under this (very) indicative Offer of around 7.6-8.6 turns of EBITDA.
STI REIT Sector Weight to Return to ~13% with Frasers Centrepoint Trust Inclusion
- The STI March quarterly review will see Frasers Centrepoint Trust (FCT) added to the STI effective the Monday 18 March open.
- FCT’s inclusion is expected to take the STI’s REIT Sector weight back to ~13% from ~12% at present, and the number of STI REITs back to seven, following Keppel DC REIT leaving the STI in June 2023.
- Impacting the outlook for financing costs, this has seen the six STI REITs average 9.4% declines in unit prices post the indicative 29 Dec 2023 STI weightages.
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