Massive divestments loom on the horizon for Singtel: Moody’s

Gains will amount to billions.

Singtel is expected to monetize a number of non-core assets in the near-term in order to pare down its debt, according to a report by Moody’s.

For instance, Singtel needs to monetize its assets in NetLink Trust by April 2018. The value of the assets transferred by Singtel to NetLink Trust is about $2 billion, and Moody's expects Singtel to use part of the divestment proceeds to repay debt.

"Singtel could also monetize its investments in its non-core Singapore associates, including Southern Cross and Singapore Post -- the market capitalization of which was $4.1 billion as of 30 June 2015 (valuing Singtel's stake at about $940 million)," said Nidhi Dhruv, a Moody's Assistant Vice President and lead analyst for Singtel.

Singtel has recently sold its 30% stake in travel services company Abacus Travel Systems for $4.1m (US$3m).

The latent value of Singtel's investments in its regional mobile associates was also significant at about $30.3 billion as of June 2015, more than double its adjusted total debt of $11.8 billion, Moody’s said.