OpenNet seeks nod for $98m sale

Dylan Bushell-Embling
23 Aug 2013
00:00

Singapore's NG-NBN netco OpenNet has filed for approval to consolidate its shares under a single parent company.

But the deal is likely to come under close scrutiny from regulators due to a connection between the proposed buyer and SingTel.

OpenNet's four shareholders are seeking to sell their stakes to CityNet, trustee manager for NetTrust, a 100%-owned but independently operated SingTel subsidiary.

OpenNet is currently jointly owned by SingTel Interactive, Singapore Press Holdings subsidiary SPH Net, Axia NGNetworks and SPT Net.

The total cash price of the proposed deal is S$126 million ($98.2 million), which compares to an audited net asset value for the company of S$136.5 million.

But TodayOnline noes that SingTel's connection to CityNet may serve as a hurdle to regulatory approval. SingTel's part-ownership in OpenNet has been a sticking point for some time given its involvement as a key NG-NBN subcontractor.

Local media is meanwhile speculating that the sale could be motivated for the high-profile delays in connecting and activating customers to the network. But OpenNet recently announced it had met the 95% fiber coverage target stipulated under the NG-NBN project.

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