Singapore state investor Temasek Holdings (Singapore) will sell as many as 500 million shares in Singapore Telecommunications Ltd (Singapore) to raise up to $1.34 billion, according to a term sheet seen by IFR late on Tuesday.
The transaction comprises a base size of 400 million SingTel shares at S$3.20 and S$3.25, which works out to around S$1.3 billion ($1.06 billion). It includes an upsize option for another 100 million shares that if exercised will raise the deal size to $1.34 billion.
A Temasek spokesman confirmed the sale.
"We continue to be a significant shareholder in SingTel. As an active investor for the long term, we rebalance our portfolio from time to time," he said.
Assuming all 500 million SingTel shares are sold, Temasek's stake in Southeast Asia's largest telco will fall to about 51.3 percent from 54.4 percent, still making SingTel the biggest firm in Temasek's portfolio by market capitalization.
Citigroup and Morgan Stanley are joint bookrunners for the deal, according to the term sheet.
(Reporting by Daniel Stanton of IFR and Saeed Azhar; Editing by Kevin Lim)