SYDNEY, Australia-Singapore Telecommunications Ltd. has won the bidding war for Australian mobile operator Cable & Wireless Optus Ltd. with a cash and share offer for the company of up to $2.30 per share, valuing Optus’ equity at nearly $8.6 billion.
Optus announced it was for sale last year, and Vodafone Group plc and Telecom New Zealand also submitted bids. Vodafone withdrew from the bidding on March 25.
Cable & Wireless plc, the Australian operator’s major shareholder, will exit the company and has entered into an agreement with SingTel to accept the proposed offer in respect of a total 19.9 percent of Optus’ issued capital. Cable & Wireless is selling Optus as part of its strategy to move from voice-based telephony to data and Internet services for businesses.
Shareholders will be able to select one of three options: 1.66 SingTel shares for every Optus share, 0.80 SingTel shares plus $1.12 in cash for every Optus share or 0.54 SingTel shares, $1 in cash and 22 cents in SingTel U.S.-denominated bonds for every Optus share.
If successful, SingTel will seek a general listing of its shares on the Australian stock exchange.
The win is important for SingTel, which is focused on maintaining Optus’ consumer, mobile and corporate data businesses. Vodafone would likely have sold all the carrier’s non-wireless assets. The sale marks the first failed acquisition attempt for Vodafone since its takeover of Mannesmann AG early last year.
The Australian government released a statement welcoming the offer and noting that although the offer still must be considered by shareholders, the Foreign Investment Review Board and the Australian government, there are no impediments to SingTel operating in the Australian market.
