Although things are looking rather gloomy for Singtel, CGS-CIMB is keeping its “buy” call on the stock with an unchanged target price of $3.40.

On July 30, Singtel announced that its 31.9%-owned associate in India, Bharti Airtel, booked some $911 million in exceptional charges for 1QFY21. This comprises additional provisions for licence fee and spectrum usage charges pursuant to the Indian Supreme Court’s decision on the Adjusted Gross Revenue matter and tax-related charges.

But, Singtel will book a $550 million gain on dilution from Bharti Telecom's 2.75% Bharti stake sale in May.

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