Strategy spotlight

10 June 2008 By Una Galani Follow @ugalani

After its Indian partner Bharti walked away from South Africa s MTN, SingTel is looking to China for growth. Yet its minority holdings in numerous companies, with no clear path to control, should concern investors. SingTel trades on a premium but may deserve a discount.

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Singapore Telecommunications on Tuesday confirmed it was in talks with various Chinese telecom operators over a potential a strategic investment. Earlier this month, China Telecom Chairman Wang Xiaochu said it was looking for a strategic investor and has been approached by several companies.

Last month, talks collapsed between India's Bharti Airtel and South African operator MTN. SingTel, which owns 30.4% in Bharti, was expected to provide financing and take a direct stake in MTN.

SingTel's whollyowned operations in Singapore and Australia are estimated to make up less than half of the group's total market value. Its portfolio of investments also includes minority stakes in Indonesia's Telkomsel, Globe Telecom in the Phillipines and Pacific Bangladesh Telecom.

SingTel declined to comment.

Context News

Last month, talks collapsed between India's Bharti Airtel and South African operator MTN. SingTel, which owns 30.4% in Bharti, was expected to provide financing and take a direct stake in MTN.

SingTel declined to comment.

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