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SingTel to offload infrastructure assets
25 July 2011
Operator to move $1.6 billion into trust firm
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
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 Trusts
operations and maintenance. GTB