Singtel satellite unit worth $2 billion, says Nomura
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.