SingTel in talks to buy Pacific Internet: Report

SingTel in talks to buy Pacific Internet: Report

SINGAPORE (AP): Singapore Telecommunications (P.SGT) is in "advanced stages" of talks to acquire Nasdaq-listed Internet service provider Pacific Internet (PCNTF), The Straits Times newspaper reported Saturday.

SingTel already owns Pacific Internet's rival SingNet. The two companies are Singapore's major Internet service providers.

SingTel, which is 78 percent government-owned and the affluent city-state's largest company, has been losing its former monopoly due to recent government liberalization of Singapore's telecoms market.

The company is trying to make up for its weakened position at home by aggressively expanding across Asia in a bid to become a major telecoms player in the region.

SingTel is also shopping locally, having earlier expressed interest in bidding for rival Singapore mobile phone operator M1, the newspaper said.

In its report on the Pacific Internet talks, The Straits Times quoted unidentified sources "close to negotiations."

SingTel spokesman Chia Boon Chong Saturday declined to comment on the report. "We do not comment on any specific investment opportunities or market speculation," he said.

"As and when there are agreements signed or material developments regarding investments in other companies, we will make the announcements," he added.

The newspaper quoted Dulcie Chan, a spokeswoman for Singapore's Infocomm Development Authority, as saying that any applications for shareholding changes would be reviewed "to ensure that the change does not unreasonably restrict competition."

Public affairs officers from the authority, which regulates Singapore's communications industries, couldn't be reached for comment Saturday.

The Straits Times said SingTel is discussing the Internet deal with SembCorp Industries (P.SEC), which owns 42 percent of Pacific Internet, and that a general offer would me made for all Pacific Internet shares if an agreement is reached.

Singapore International Media's SIM Ventures owns 14 percent of Pacific Internet.

SembCorp and SIM are controlled by Temasek Holdings, Singapore's government-owned holding company.

Pacific Internet has at least 380,000 subscribers is currently worth about $55 million, The Straits Times said.

Pacific Internet couldn't be reached for comment Saturday.