SingTel

[Drizzt]

Ben too true my thoughts exactly. I write about it here > http://www.investmentmoats.com/money-man...n-singtel/

[Thriftville]

Hey Drizzt, I read somewhere in your blog that the ROI for Optus is about 5%. Do you have any knowledge of what happen during the acquisition? I remembered that Singtel bought Optus after failing to win Hong Kong telecom.

and whether Optus will continue to generate even better returns in the long run?

Hope to hear your views!

[Drizzt]

hi Thriftville, i was pretty shocked by the figures when i saw it. When they say they paid alot for OPTUS i thought its not that bad. calculating the ROA really shocked me.

there is a vast difference even compared to thos bharti investments which looked better.

but it is important to Singtel. It generates like SGD 1 bil in cashflow compare to 1.4 bil for Singapore and 1 bill for the rest of the other markets.

But that purchase make SPH purchase of clementi mall and DBS purchase of Dao Heng look good haha

[Musicwhiz]

Hey Drizzt, I read somewhere in your blog that the ROI for Optus is about 5%.

Wow ROI on Optus is just 5%? SingTel may actually do more justice in returning the cash to shareholders via increasing dividends!

[corydorus]

I second that ! Show me the Money.

[Drizzt]

now u know how bent on overpaying those scholers were

---

optus 2009 profit 1bil singtel 1.7 bil
assets optus 19 bil of with 9 bil is goodwill
assets singtel 4.2 bil

[Thriftville]

Wow ROI on Optus is just 5%? SingTel may actually do more justice in returning the cash to shareholders via increasing dividends!

Yeah that's quite bad and I was quite surprised that the return was so low!
I guess it was at a time when they have the cash to expand, but no other good assets to buy.

[Drizzt]

they didnt! they just loan alot of money.

[Thriftville]

they didnt! they just loan alot of money.

Oh that's not good! By the way, Singtel's debt seems ok for now. What's your view on their debt position so far?

[Drizzt]

their financial position is very strong. very little debt which is easily cleared in less than 3/4 of a year.