Singapore Telecommunications (SingTel) will take a stake in Taiwanese mobile operator Far EasTone Telecommunications as part of a stock swap agreement between the two companies.
SingTel will trade its stake in Taiwanese fixed-line operator New Century InfoComm Tech (NCIC) for a 4% stake in Far EasTone worth nearly NT$6.1 billion (US$184.3 million) based on the stock’s closing price on Aug. 14, according to a filing with Singapore Exchange.
The deal is expected to be completed by the end of this year.
SingTel owns 24.5% of NCIC which offers broadband Internet, hosting and telephony services in Taiwan under the Sparq brand. Trading this stake for a piece of Far EasTone expands SingTel’s investments in Asian mobile carriers and opens the door to possible cooperation between the two companies.
SingTel, which counts the investment arm of Singapore’s government as its largest shareholder, already holds stakes in Thailand’s Advanced Info Service Public, Bharti Airtel in India, Globe Telecom in the Philippines, Pacific Bangladesh Telecom and PT Telekomunikasi Cellular in Indonesia. The company also owns SingTel Optus Pty in Australia.
