Thursday, March 21, 2013

SingTel may sell Optus Satellite division

SingTel has hired both Morgan Stanley and Credit Swiss to review the potential for selling the Optus Satellite division. The Oputs Satellite division currently operates five satellites in orbit, and has one Satellite, Optus 10 under construction.

Speculation has started to form around APT Satellite from Hong Kong and EutelSat from Paris, however due to the defence contract on the Optus C1 satellite, a chinese connected buyer (APT is partly owned by ChinaSat) may raise some eyebrows in Canberra and complicate a potential deal.

Valuations are speculated to be in the $1B to $2B range, with the potential that if SingTel cannot find a buyer, an IPO might be another option. It is not clear how the NBNCo Satellite plans may have affected the future direction for the Optus Satellites division, however it will no doubt be in the back of the mind of any potential buyers.

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