02/10/2023 (Singapore) - Singapore Telecommunications Limited (STEL.SI) announced on Monday its decision to part ways with its stake in cyber security enterprise Trustwave, striking a $205 million deal with MC2 Titanium, LLC.
Singapore Telecommunications, commonly known as SingTel, holds a prominent position as one of Asia's leading communications groups. With a history spanning over 140 years, the company boasts a significant presence across the Asian and African continents, offering a comprehensive range of advanced communication solutions, from mobile and fixed-line services to data and internet services.
Trustwave, a notable name in the cybersecurity arena, offers a range of services, including threat intelligence, penetration testing, and managed security services. Over the years, the firm has effectively catered to businesses, safeguarding their digital assets against an ever-evolving threat landscape.
This move by Southeast Asia's foremost telecom conglomerate follows a strategic analysis of its 98% interest in Trustwave, initiated in 2021. The review was spurred after SingTel's initial acquisition of the stake in 2015, for which it invested a substantial $770 million.
However, this divestment occurs after an impairment charge of S$336 million ($245.92 million) that SingTel recorded related to Trustwave in the latter half of 2021.
The transaction's closure is anticipated around the fourth quarter. SingTel has indicated that this financial shift will not materially affect the company's fiscal results for 2024.