SingTel

i guess they are selling at really at 3.33 as they have an option to sell 25% more @ 3.2 if you value that option at something more than zero.

I just bought some today, am playing for the yield to converge with the other telcos.

(26-09-2012, 10:20 AM)CityFarmer Wrote: Today announcement from Singtel with a slightly smaller divestment, 400 millions share instead of 500 millions share reported by Channel News Asia

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Mr Market responded with approx -3.9% drop on Singtel share price.

From the CNA link you posted earlier,

According to reports, the deal comprises 400 million SingTel shares priced between S$3.20 and S$3.25. This translates to some S$1.3 billion.

An upsize option for an additional 100 million shares may increase the deal size to US$1.34 billion, if exercised.

Looks like the Upsize Option wasn't exercised.

Anyway, just nice, put it back to my watch list for the next 1H13 (Sep) results + Div (last 2 years 6.8ct). For me, Target max. $3.16 for 5% yield (assuming it maintains DPS), too bad I wasn't aro' earlier when it hit. No hurries, results likely only in B-Nov.

---

Extracts from Bloomberg,

Temasek is selling 400 million shares in Singapore Telecommunications Ltd. (ST), representing a 2.5 percent stake, at S$3.20 each, according to the people, who asked not to be identified because the information isn’t public. The price, at the lower end of a S$3.20 to S$3.25 range in a term sheet sent to investors, is a 3.9 percent discount from yesterday’s closing price of S$3.33.

I guess we won't be getting any official confirmation on the price?

(26-09-2012, 10:28 AM)freedom Wrote: Temasek sold @3.2, so Singtel must be trading @3.2.

no surprise.

You are right, volume of 429 millions share transacted @ $0.32, shown by the trade summary. It must be Temasek selling

(26-09-2012, 11:02 AM)CityFarmer Wrote:

(26-09-2012, 10:28 AM)freedom Wrote: Temasek sold @3.2, so Singtel must be trading @3.2.

no surprise.

You are right, volume of 429 millions share transacted @ $0.32, shown by the trade summary. It must be Temasek selling

Oh ya, forgot about such tools...


08:35:17 3.347 500,000 X
08:35:00 3.200 100,000,000 X
08:35:00 3.200 100,000,000 X
08:33:38 3.200 200,000,000 X

Who's the lucky fella who sold at $3.347!

3.347 is what was done yesterday but reported to SGX today only.

don't read too much into it.

(26-09-2012, 11:06 AM)KopiKat Wrote:

(26-09-2012, 11:02 AM)CityFarmer Wrote:

(26-09-2012, 10:28 AM)freedom Wrote: Temasek sold @3.2, so Singtel must be trading @3.2.

no surprise.

You are right, volume of 429 millions share transacted @ $0.32, shown by the trade summary. It must be Temasek selling

Oh ya, forgot about such tools...


08:35:17 3.347 500,000 X
08:35:00 3.200 100,000,000 X
08:35:00 3.200 100,000,000 X
08:33:38 3.200 200,000,000 X

Who's the lucky fella who sold at $3.347!

Must be one who learned the news, and "fast hand fast leg" queue-up to sell earliest in the morning before widely known Likely an institutional investor

Managed to grab some at 3.19 this morning, I am happy with the ~ 5% dividends yield

(26-09-2012, 12:54 PM)Ben Wrote: Managed to grab some at 3.19 this morning, I am happy with the ~ 5% dividends yield

It ought to stay above $3.20 for a while and maybe even go closer to $3.30. We don't want the placees to look silly, right...?

PS. Look at the huge Buy Q @ $3.20.. I think hard for me to get any at my target price..

MayBank Kim Eng report dated 26-Sep-12,

iPhone 5 To Dampen Margins in 2H12

Slower 2H ahead. We are maintaining our SELL calls on SingTel and StarHub as we expect them to be hardest hit by the higher subsidies and longer clawback periods of the iPhone 5 in 2H12. However, M1 is likely to see a more muted impact due to its accounting treatment which brings forward part of future revenue to offset the cost of the subsidy. As such, M1 remains a HOLD, and is our top telco pick in Singapore.

iPhone 5 trumps iPhone 4S. Apple’s iPhone 5 started selling around the world last Friday, including Singapore, and demand is much stronger than the 4S model. Apple has reported that pre-orders for iPhone 5 topped 2m units in 24 hours, more than double the amount of pre-orders it took for the iPhone 4S, reflecting strong pent-up demand for this new model. In Singapore, all the telcos sold out online 90 minutes after opening for booking.

Subsidies rise sharply. Based on the telcos’ iPhone 5 plans, they are stretching their subsidies out over a longer period for iPhone 5 compared to the iPhone 4S. At the sweet spot of the two cheapest plans, which have a minimum contract period of 24 months, the telcos will need almost 1.5 months more to recoup their subsidy cost for the iPhone 5 than the iPhone 4S.

Margin impact likely to be worse than iPhone 4S. EBITDA margins are likely to be affected in 3Q12. Based on past trends, we expect a larger impact (3-4ppt) for SingTel and StarHub, but a more muted impact on M1 (1-2ppt) due to its accounting treatment for iPhones where future revenue is brought forward to cover the cost of subsidies. Based on current reported iPhone sales however, we think our existing forecasts are still in the money.

Hopefully, higher data usage can offset higher subsidy. iPhone 5 is an LTE handset, and the faster LTE speeds should drive up data usage as it would be much easier to consume data, particularly when viewing video and using FaceTime for video chats. We are not assuming a significant rampup in data revenue yet because we think there will be a period of adjustment, where telcos need to improve their app and content offerings, and users need to adjust their consumption patterns.

(26-09-2012, 10:05 PM)KopiKat Wrote: Hopefully, higher data usage can offset higher subsidy. iPhone 5 is an LTE handset, and the faster LTE speeds should drive up data usage as it would be much easier to consume data, particularly when viewing video and using FaceTime for video chats. We are not assuming a significant rampup in data revenue yet because we think there will be a period of adjustment, where telcos need to improve their app and content offerings, and users need to adjust their consumption patterns.

The subsidy is a one time hit, but I believe telco will ultimately gain due to increase in data usage. For those who recontract their plan now (and so enjoy a subsidy on iphone), their data cap is reduced significantly. With a more powerful iphone, it is easy to exceed the new limit.

I think this strategy is a bit like Gillette, the shaver is selling cheaply (not sure if it is subsidize) but the refills is expensive in comparison.

The recent few acquisitions by Singtel clearly shows the company intention to provide more content, and milk more money from its customers, all in the name of providing more added services to customers.