Singtel Sells 2.8% Gulf Development Stake for 1 Billion Singapore Dollars, Keeps 4.95% Holding

Singtel sold a 2.8% stake in Gulf Development for about 1 billion Singapore dollars directly to institutional investors, Cnbc reported. The sale generated an equity gain of about 140 million Singapore dollars. Singtel retains a 4.95% stake in the Thai company valued at about 1.8 billion Singapore dollars after the transaction.

The divestment supports Singtel's push into AI and data-center investments. The company expects capital expenditure of around 3 billion Singapore dollars in its current fiscal year, up from 2. Of the current-year total, 1.2 billion Singapore dollars are earmarked for data centers and AI, including GPU-as-a-service and sovereign AI services for Singapore, CEO Yuen Kuan Moon said during a May appearance on CNBC's Squawk Box Asia.

Group chief financial officer Arthur Lang said the divestment underscores Singtel's efforts to optimize its portfolio and maintain a disciplined approach to capital management. Lang added that Singtel's partnership with Gulf Development remains strong and that Thailand continues to be an important market. Singtel's shares last traded 1.38% lower at 4.30 Singapore dollars.