SingTel drops Optus Satellite sale

Optus parent says its committed to growing, investing in $2bn business.

Singapore Telecom (SGT) has decided to hold onto its Optus Satellite business, with an initial public offering (IPO) of the unit potentially on the cards.

SingTel, which kicked off a strategic review of the satellite business in March, said that a sale was no longer an option, with speculation that the operator had failed to seal a deal with prospective buyers.

Earlier this month, there was talk that SingTel had received at least two offers for the $2-billion plus unit in the final round of the bidding process - one from US-listed Intelsat SA and another from a consortium made up of Blackstone Group LP, TPG Capital and Malaysia's MEASAT Global.

"Based on the review, SingTel is committed to growing and investing in the satellite business," the company said in a statement to Singapore Exchange this morning.

Optus Satellite delivers free-to-air and pay TV, mobile telephony and broadband services to over two million Australian households and multi-national companies.

The telco operates a fleet of five satellites, with another satellite, Optus 10, scheduled for launch in 2014.