Singapore Telecommunications (SingTel), the largest telecom firm in Southeast Asia, has finalized an agreement with MC2 Titanium to sell its stake in Trustwave, a cybersecurity business, for a total sum of $205 million. This move follows SingTel’s strategic review of its 98 percent stake in Trustwave, initiated in 2021, subsequent to its acquisition for $770 million in 2015.
The decision to divest the stake in Trustwave was reinforced by an impairment charge of S$336 million ($245.92 million) incurred by SingTel during the second half of 2021. The impairment charge underpinned the necessity for strategic reevaluation, ultimately leading to the decision to sell the stake.
The divestment transaction is expected to be completed by the fourth quarter of the fiscal year and is projected to have no material impact on the SingTel group for the fiscal year 2024. This strategic move aligns with SingTel’s focus on optimizing its portfolio and ensuring sustained growth within its core business operations.
SingTel’s divestment of its Trustwave stake stands as a significant step in repositioning its investment portfolio, enabling the company to strategically reallocate resources and capitalize on emerging opportunities in the rapidly evolving technology and telecommunications landscape.