Tuesday, August 26, 2008

SINGTEL MAKES BID FOR SINGAPORE COMPUTER SYSTEMS

Singapore
The Economic Times

Singapore Telecommunications said it has bought a 60 per cent stake in Singapore Computer Systems for S$140 million ($99 million) as it seeks to boost its IT business.

The deal, which will trigger a mandatory offer for all shares in Singapore Computer Systems, values the computer services firm at S$233 million, according to data.

SingTel, Southeast Asia's largest telecoms group, said in a statement it acquired 93.1 million shares in Singapore Computer Systems from Green Dot Capital, a unit of state investment firm Temasek Holdings, at S$1.50 each. Temasek is also the parent company of SingTel.

The purchase price represents a 12 per cent premium to the company's closing share price on Friday of S$1.34. The mandatory offer for the remaining shares in the company will also be made at S$1.50 each.

Citigroup advised Temasek and ANZ is advising SingTel's IT services business NCS.

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