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SingTel to offload infrastructure assets

25 July 2011

Operator to move $1.6 billion into trust firm

Read more: Singtel infrastructure offload

SingTel plans injecting infrastructure assets worth 1.89 billion Singaporean dollars ($1.56 billion) into a trust called NetLink, a wholly-owned subsidiary of SingTel, reports Channel News Asia.

The assets consist of ducts and manholes used by OpenNet, the operating firm responsible for laying optical fibre cables for Singapore's Next Generation Nationwide Broadband Network (NGNBN). It also encompasses seven exchange buildings.

CityNet Infrastructure Management will act as the trustee-manager for NetLink Trust and will receive around $1.73 million as annual management fees. The funding for the sale will be done through a unit-holder loan from SingTel to CityNet and the issue of NetLink Trust-units to SingTel.

SingTel mulls the sale as the government has asked the telecoms provider to gradually divest NGNBN-related assets to an independent asset firm by mid-2011 and sell down its stake in the company by 2014.

SingTel will bear any extra cost for NetLink Trust’s operations and maintenance. GTB

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