WRAP: Telstra Entry Seen Good For Singapore's MobileOne
By Shen Hong and Helen Ubels
Of DOW JONES NEWSWIRES
SINGAPORE (Dow Jones)--The possible entry of Australia's Telstra Corp. (TLS) as a new shareholder in MobileOne (Asia) Pte. Ltd., or M1, could help Singapore's second largest mobile phone operator become a strong regional player, analysts said Friday.
The Australian Financial Review reported Friday that Telstra is in final negotiations with U.K.'s Cable & Wireless PLC (CWP) to buy the latter's A$500-million 15% stake in M1.
"Regionalization. It's the only missing piece in M1 right now," said an analyst with a local brokerage in Singapore. He said that while M1 needs to "grow outside" of Singapore, it lacks a foreign shareholder with a "vision" and "a plan" to help it expand in Asia-Pacific.
M1's other shareholders include Keppel Telecommunications and Transport Ltd. (P.KTT), or Keppel T&T, with a 35% stake; Singapore Press Holdings Ltd. (P.SPH) with a 35% stake and Pacific Century Cyberworks Ltd. (PCW) with a 15% stake.
Analysts noted that Keppel T&T and Singapore Press Holdings have said they prefer a new shareholder with experience in the telecommunications industry. Such a partner could help M1 expand into potential markets such as the Philippines, Thailand, South Korea, and Taiwan.
Telstra buying into M1 would also help pave the way for M1 to launch its much-anticipated initial public offering expected sometime later this year, analysts said.
Scott Marshall, an analyst with Shaw Stockbroking Ltd., said that Telstra buying into M1 fit with the Telstra's strategy to expand in Asia.
If the deal goes though, he said it is likely Telstra would deposit the asset into its 60%-owned mobile joint venture with Pacific Century CyberWorks Ltd.
Telstra, Keppel T&T, and M1 declined to comment on the Australian Financial Review report.
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