* Mitchell Bingemann * From: The Australian * January 16, 2010 12:00AM
A $4 BILLION Optus float on the Australian Securities Exchange could kick off as early as mid-February as its parent Singtel continues to speak to investment firms keen to advise on the deal.
However, any float is likely to await clarification on Optus's involvement in the $43bn national broadband network.
Goldman Sachs and Morgan Stanley are leading the charge for an advisory role.
Sources close to Singtel say the initial public offering could go ahead as early as Chinese New Year in mid-February, or occur mid-year to align with the group's financial reporting period.
Earlier this week, The Wall Street Journal reported Singtel was considering a 25 per cent sell-off of its stake in Optus. Optus declined to comment.
In November, Singtel chief executive officer Chua Sock Koong said the company had not yet made a decision about selling a stake in the local telco.
"We do review investments we have in our various subsidiaries and if it's in the best interest of our shareholders to list or sell shares, we are prepared to look at it," she said at the time.
Financial analysts value Optus between $12bn and $14bn -- significantly lower than the $17bn paid for it in 2001, making it Australia's then biggest takeover.
However, Singtel is hoping a 25 per cent sell-off would bring in at least $4bn.
If the float goes ahead, Singtel is expected to use the cash injection for acquisitions in developing markets.
The maturation of Australia's telecommunications market has prompted Singtel to look at the burgeoning Southeast Asia markets where opportunities to acquire and quickly expand are rife.
The success of a float could hinge on Optus CEO Paul O'Sullivan sticking around. Mr O'Sullivan has insisted he plans to stay so long as he feels he is adding value to Optus, but there has been speculation about his tenure.
Mr O'Sullivan has led Optus for more than a quarter of its existence, having moved from chief operating officer to CEO in September 2004 when Chris Anderson retired.
SGT Price at posting:
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