Singtel mulls options for Amobee, Trustwave; sees $1.2b annual charge

Singapore Telecommunications Ltd said on Friday (May 14) it had begun a strategic review to consider options for digital marketing firm Amobee and cyber-security business Trustwave.

Singtel said it expected to record a $1.21 billion ($907.3 million) charge in its full-year results, mostly due to impairment of assets and goodwill at the two businesses.

Singtel has been facing slowing growth in its traditional carrier business and has been trying for years to diversify in new sectors.

It bought US-based Amobee for $321 million (S$428 million) in 2012 and completed the acquisition of Trustwave at a reduced price of $770 million in 2016.

The review marks the first major overhaul since Yuen Kuan Moon took over as chief executive officer in January.

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“This review could involve the restructuring of product or business segments, a full or partial divestment or business combinations with other industry players,” Moon said.

“We are open to all types of strategic partnerships and deals including inviting investors who have complementary capabilities and can enhance the value of the businesses.”

The company said it had booked an impairment charge of $589 million on Amobee and $336 million on Trustwave in the second half of the year.

It will release its second-half and annual results on May 27.