Expectations that the telco could fetch $16 billion to $18 billion could be a win for rivals Telstra and TPG Telecom, E&P analysts say.
An investment in Australia’s second-largest telecommunications group by Canadian private equity giant Brookfield could prop up valuations across the sector – if it’s done at the right price.
“Ultimately, we view this as supportive of sector valuations, with the implied EBIT multiple significantly higher than current trading multiples for the listed telcos,” he said.this month that Singtel was in advanced discussions to sell Optus to Brookfield with expectations around the $16 billion to $18 billion mark. A deal would spell a big payday for Singtel after more than two decades of ownership.
“Critically, Vodafone NZ showed a willingness to cede mobile subscriber market share over the period in order to increase profitability and returns, with its mobile subscriber market share falling from 41 per cent in 2018 to 35 per cent in 2022,” Raykovski said.
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