Sing­tel satel­lite unit worth $2 bil­lion, says No­mura

The Pak Banker - - COMPANIES/BOSS -

S in­gapo re Telecom­mu­ni­ca­tions Ltd. (ST), south­east Asia's largest phone com­pany, said it was re­view­ing its Op­tus Satel­lite unit in Aus­tralia, which No­mura Hold­ings Inc. said may be worth A$2 bil­lion ($2 bil­lion) if sold. Sing­Tel, as the car­rier is known, hired Credit Suisse Group AG and Mor­gan Stan­ley as ad­vis­ers, the Sin­ga­pore-based com­pany said in a reg­u­la­tory state­ment. The busi­ness had rev­enue of A$319 mil­lion last fi­nan­cial year, it said. Typ­i­cal op­er­at­ing mar­gins at satel­lite telecom­mu­ni­ca­tions com­pa­nies are 80 per­cent of sales, and the car­ri­ers are typ­i­cally val­ued at six times to eight times earn­ings, said Sachin Gupta, an an­a­lyst at No­mura in Sin­ga­pore. That would put a price tag of as much A$2.04 bil­lion on the Op­tus busi­ness based on its sales, he said. "It's one of their more prof­itable busi­nesses," Gupta said by phone to­day.

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