Singtel considers options for Amobee, Trustwave; sees $ 907 million in annual fees
Adds review details, CEO comment, background
May 14 (Reuters) – Singapore Telecommunications Ltd STEL.SI announced on Friday that it has begun a strategic review to consider options for digital marketing firm Amobee and cybersecurity firm Trustwave.
Singtel said it expected to record a S $ 1.21 billion ($ 907.3 million) charge in its annual results, mainly due to the impairment of assets and goodwill at the two companies.
Singtel is facing a slowdown in the growth of its traditional carrier business and has been trying for years to diversify into new sectors.
It bought the American company Amobee for $ 321 million in 2012 and completed the acquisition of Trustwave at a reduced price of $ 770 million in 2016.
The review marks the first major overhaul since Yuen Kuan Moon took over as chief executive in January.
âThis review could involve the restructuring of products or business segments, a full or partial divestiture or business combinations with other industry players,â Moon said.
“We are open to all types of strategic partnerships and agreements, including inviting investors who have complementary capabilities and can enhance business value.”
The company said it recorded an impairment charge of S $ 589 million on Amobee and S $ 336 million on Trustwave in the second half of the year.
It will publish its half-year and annual results on May 27.
($ 1 = 1.3336 Singapore dollars)
(Reporting by Shashwat Awasthi in Bangalore and Aradhana Aravindan in Singapore; editing by Shailesh Kuber and Rashmi Aich)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.