Telecom acquisition planned

Telecom acquisition planned

SINGAPORE (AFP): Singapore Telecom, the largest publicly- listed company in this city state, is to acquire a 24.5 percent stake in Australia's long distance telephone company AAP Telecommunications Pty. Ltd. (AAPT), it was announced here.

The acquisition costing A$55 million (about US$40 million) was through wholly-owned subsidiary Singapore Telecom International Pte. Ltd. (STI), according to a statement by Singapore Telecom.

"This amount will be paid in cash for new ordinary shares in the capital of AAPT," the statement said.

It added that the investment was subject to approval by the Australian Foreign Investment Review Board, with a decision expected sometime next month.

The other shareholders of AAPT, the third largest long distance telephone company in Australia, are AAP Information Services Pty. Ltd. with a 51 percent stake and Todd Corp. which owns 24.5 percent.