SingTel to lift limit rule

SingTel to lift limit rule

SINGAPORE (AFP): Singapore Telecommunications Ltd. (SingTel) said Friday it was moving to lift a cap on foreign ownership which would clear the way for the entry of a strategic partner.

The move is expected to dilute the government's 78.39 percent stake in Singapore's biggest telecommunications firm, but analysts said the extent of the divestment was still unclear.

SingTel is to seek shareholders approval of the proposal to remove the 40 percent cap on foreign ownership during a general meeting on September 25.

In a circular to shareholders, SingTel said lifting the limit would "facilitate investments by foreign strategic investors in line with its efforts to globalise, thereby increasing its effectiveness to compete in the global marketplace."

News reports in the Straits Times and Business Times newspapers Friday identified Verizon Communications of the United States and Deutsche Telekom of Germany as possible interested parties but a company spokesman declined to comment.