Singtel, Southeast Asia's largest telecom operator, sold a 2.8% stake in Thailand's Gulf Development for about S$1 billion ($772.9 million) to raise capital for new investments. This sale, which generated an equity gain of around 140 million Singapore dollars, leaves Singtel with a 4.95% stake in Gulf Development, valued at approximately 1.8 billion Singapore dollars.
Arthur Lang, Singtel's CFO, emphasized that this divestment is part of a strategy to optimize their portfolio and manage capital effectively. The company plans to increase its capital expenditure to about 3 billion Singapore dollars in the current fiscal year, up from 2.5 billion Singapore dollars the previous year, with a significant portion allocated to growth in AI and data center services.
CEO Yuen Kuan Moon highlighted that 1.2 billion Singapore dollars will be directed towards developing AI services, particularly for Singapore. Following the announcement, Singtel's shares fell by 1.38% to 4.30 Singapore dollars