Singtel says no certainty of Australian phone tower sale

Singtel said on Friday there was no certainty of a deal to sell its telecom towers in Australia following a media report that the telecom operator was preparing to put the assets estimated A$2 billion ($1.2 billion) on the block.

“Singtel regularly reviews its options to optimise its assets and operating model,” the firm said in a regulatory filing on Friday. “Singtel wishes to emphasise that there is no certainty or assurance that any transaction will occur.”

Singapore Telecommunications Ltd has mandated Bank of America to sell the portfolio, the Australian Financial Review (AFR) first reported on March 30, and later by other media. AFR estimated the portfolio of towers to be at least A$2 billion.

A representative for the company declined to comment on the value of the assets, which is owned by its Optus subsidiary.

Credit ratings agencies Fitch and S&P Global this year downgraded Singtel, citing weak growth prospects and the potential need for higher capital expenditure.

―Reuters