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Analysts positive on Singtel's ATN sale, data centre business expansion

Atiqah Mokhtar
Atiqah Mokhtar10/4/2021 7:8 PM GMT+08  • 3 min read
Analysts positive on Singtel's ATN sale, data centre business expansion
Analysts are upbeat on the "generous premium" struck for the ATN deal.
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Analysts from RHB Group Research and CGS-CIMB Research are upbeat on Singapore Telecommunication’s (Singtel) recently announced divestment of a 70% stake in Australia Tower Network (ATN), a subsidiary of Optus, for A$1.9 billion ($1.86 billion).

See: Singtel divests 70% stake in Australia Tower Network for $1.9 bil; to expand data centre business regionally

The RHB Singapore research team kept their “buy” call for Singtel with a higher target price of $3.37, up from $3 previously. “We view positively Singtel’s disposal of a partial stake in ATN, the first value unlocking of infrastructure assets and capital recycling exercise under the strategic reset announced in May,” the team says in an Oct 4 research note.

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