SingTel may sell stake in SingPost next year
Singapore Telecommunications may spin off or sell a stake in its post office arm, Singapore Post, next year, said SingPost Chief Executive William Tan.
However, Mr Tan says the timing of the stake sale may be affected by the performance of the stock market.
SingTel said in May it is deciding what to do with the postal unit, which does not fit in with the telco’s focus on cellular and data services.
The postal services unit is estimated to be worth about S$1.5 billion.
The divestment would help SingTel cut its S$10.6 billion debt, which it is trying to reduce, as well as maintain its credit rating.
Last fiscal year, SingPost accounted for just S$355 million of SingTel’s S$7.3 billion in operating revenue.
