ehh...though this isnt the correct thread...but since u asked ..here's WHY :)

DJ SingTel Plans To Float Part Of Optus As Early As 1H-Sources

(MORE TO FOLLOW) Dow Jones Newswires

January 13, 2010 22:18 ET (03:18 GMT)

*DJ SingTel Hopes To Raise A$4B From Optus IPO-Sources

(MORE TO FOLLOW) Dow Jones Newswires

January 13, 2010 22:19 ET (03:19 GMT)

=DJ SingTel Plans To Float Part Of Optus As Early As 1H-Sources

 
   By Costas Paris and P.R. Venkat 
   Of DOW JONES NEWSWIRES 
 

SINGAPORE (Dow Jones)--Singapore Telecommunications Ltd. (Z74.SG) wants to sell around 25% of its Australian unit Optus through an initial public offering in Australia that could raise about A$4 billion, people familiar with the situation said Wednesday.

"Although there is no firm timing yet and no banks have been mandated, you could see things rolling as early as the first half of this year," one of those people told Dow Jones Newswires.

Another person said SingTel could use the proceeds to "create a cash war-chest for acquisitions and expansion in markets outside Australia and Singapore."

"Australia is a mature mobile market and SingTel doesn't see much growth," he added.

SingTel, Southeast Asia's largest telecommunications firm by revenue, took control of Optus in 2001 through a bid valuing the Australian telecommunications firm at A$17 billion.

The operator now values Optus at "more than A$14 billion" the second person said, without elaborating.

Optus recorded a net profit of A$583 million for the year ended March 31. At the end of June, Optus estimated it had a 29% share of Australia's mobile phone market, and it had 8.2 million mobile subscribers at the end of September, having outpaced Telstra in new subscribers.

Though Optus is a cash cow for SingTel, some analysts have voiced concerns about the unit's margins. Its earnings before interest, tax, debt and amortization margin fell to 23.0% in the second fiscal quarter ended Sep. 30 compared with 23.2% at the same time a year earlier and 27.8% in the fourth quarter of the previous fiscal year ended March 31.

Analysts also said margin pressure could intensify further with Vodafone Hutchison Australia - a mobile joint venture between Vodafone and Hutchison Australia - set to challenge Optus for share in the Australian market that's led by Telstra Corp. Ltd (TLS).

An increasingly competitive environment for Bharti Airtel Ltd. (532454.BY), SingTel's largest bottom-line contributor among its six major foreign mobile associates, may also give fresh impetus for SingTel to make another acquisition in an emerging market to boost earnings growth.

SingTel has said it is evaluating investment opportunities in China and people familiar with the situation have said in the past the company is interested in taking a stake in Vietnam's MobiFone. It had also looked at investing in Ghana Telecom in 2007 but chose not to make a bid.

An analyst with a foreign brokerage who declined to be named said that while an acquisition would be beneficial in theory, it would be difficult to pull off given SingTel's lack of familiarity with Africa as well as regulatory hurdles in China and Vietnam.

CLSA analyst Ashwin Sanketh said an Optus listing is a possibility but questions remain about how it might use proceeds.

"While I buy the idea of a war-chest I'm skeptical about the availability of targets," Sanketh said.

"For SingTel to grow acquisitions, India and Indonesia are the markets."

The planned deal would also come at an uncertain time for the Australian telecommunications industry as the government pushes ahead with plans to build a new A$43 billion National Broadband Network.

Optus has said it is potentially willing to participate in the NBN, but hasn't said exactly how.

Hi Blastoff

Thank You!  I am holding this counter for dividend collection.   Every month about 1K.

Maybe when it goes up higher, I will sell part of it and keep the balance as free gift.

Just a note that you are among the few here who have been contributing value added topics since 2007.

Best Regards

Blastoff      ( Date: 14-Jan-2010 06:59) Posted: Wow! Congrats! That's a profit of at least $50k. Juzztrade      ( Date: 13-Jan-2010 22:59) Posted: Consider myself very lucky that I got in at $2.35 cent x 50 lot last year in March.  Will not sell, just leave it there for dividend yield at 10% .  I have plan to buy another 25 lot. All the best to those who have invested.  Good Luck.