Singapore Telecom: Analysis of news reports of potential Optus stake sale

Research evidence excerpt

Singapore Telecom: Analysis of news reports of potential Optus stake sale

J P M O R G A N Asia Pacific Equity Research

29 July 2026

Singapore Telecom Overweight

STEL.SI, ST SP

Analysis of news reports of potential Optus stake sale Price (29 Jul 26):S$4.61

Price Target (Mar-27):S$5.20

As per media reports, ST is in advanced discussions to sell a “significant minority ASEAN TMT

ACstake” in Optus. This has not been confirmed by ST or Optus though ST has Ranjan Sharma, CFA

previously stated it is open to working with potential Australian minority partners. (65) 6882-1303

Depending on the valuation in a potential deal, we calculate the proceeds could ranjan.x.sharma@jpmorgan.com

further support ST’s dividends and share repurchases. A potential deal might not Sigrid Qiu

be EPS accretive without a significant improvement in Optus’ ROIC. (65) 6882-1454

sigrid.qiu@jpmorgan.com

• News reports of a potential Optus stake sale. As per media reports, ST is in Ankur Rudra, CFA

advanced discussions to sell a “significant minority stake” in Optus (link). The (65) 6801-3237

media reports state that infrastructure investor Morrison has secured a seven- ankur.rudra@jpmorgan.com

week exclusivity period to finalize a proposal to acquire >30% of Optus. In a J.P. Morgan Securities Singapore Private Limited

release in May-26, ST stated it is open to working with potential Australian

minority partners. ST further stated that it can engage with strategic local

partners who can bring complementary capabilities and expertise to improve

service provision and quality (link). Morrison is reportedly seeking local

superannuation funds to join its bidder consortium. ST and Optus have not

commented on the recent press reports. There is no certainty a deal will happen.