C&W Optus independent directors recommend acceptance of SingTel offer: SingTel

SINGAPORE (AFX-ASIA) - Cable & Wireless Optus Ltd's independent directors have recommended that Optus shareholders accept Singapore Telecommunications Ltd's offer and are intending to accept the cash and share alternative option in relation to their own shares, SingTel said in a news release.

SingTel said the independent expert advising Optus, Grant Samuel & Associates Pty Ltd, has recommended that Optus shareholders accept the cash and share alternative.

SingTel said Grant Samuel considers SingTel's offer "reasonable (although not fair), and has on balance recommended that Optus shareholders accept the cash and share alternative."

SingTel said it will release its bidders' statement and offer today, copies of which will be sent to Optus shareholders this week.

SingTel has offered three alternatives to Optus shareholders. The share alternative involves 1.66 SingTel shares for each Optus share while the share and cash alternative includes 2.25 aud cash and 0.8 SingTel shares. The cash, share and bond alternative involves 2.00 aud cash, 0.45 aud SingTel bonds and one unsecured note redeemable for 0.54 SingTel shares.

SingTel said that as of May 18, the share alternative's value for each Optus shares stood at 3.05 aud; the cash and share alternative at 3.72 aud; and the cash, share and bond alternative at 3.42 aud.

SingTel said based on the 3.72 aud value of the cash and share alternative, SingTel's offer represents a price in line with the Optus share price at the time of the announcement of the offer, and a 13-24 pct premium 

to the price of 3.00-3.30 aud which Grant Samuel estimates as the likely trading range for Optus shares following the close of the offer.

Optus shareholders have until July 3 to accept SingTel's offer.

SingTel said assuming it acquires 100 pct of Optus, SingTel would have, on a proforma basis, total assets of 29.2 bln sgd as of March 31, 2001. Its operating revenue would amount to 9.4 bln sgd and EBITDA at 4.2 bln for the year ended March 31, 2001.

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