SingTel hits unexpected jackpot with Alibaba-SingPost deal

A tide of opportunities on the horizon for SingTel.

The outlook may not seem rosy at first, but SingTel is an unanticipated beneficiary in SingPost’s much-publicized deal with e-commerce giant Alibaba.

Alibaba’s move to acquire a 10.4% stake in SingPost will push SingTel’s shares down to 23% from its current 26%, but OCBC sees some positives in the move.

“We opine that the partnership between Alibaba and SingPost could also benefit SingTel, as it could open the door for the telco to the Chinese market; not so much in the traditional telco space but more in e-services and digital advertising,” noted OCBC.

This is welcome news for SingTel, which made headlines this week after acquiring two digital ad technology firms for a total of US$359m to expand its Digital Life strategy.