Singtel said to plan to increase stake in AIS

Singtel is reportedly in talks regarding indirectly increasing its stake in Thailand’s top mobile operator AIS.

The operator is negotiating with Temasek Holdings regarding a sale of part of the investment company’s 41% stake in Intouch, a major shareholder in AIS.

Temasek Holdings is a Singaporean state-owned investment company which holds a 51% majority stake in Singtel. Temasek is also Intouch’s biggest shareholder with a 41% stake, while Intouch itself owns 40% of AIS. Singtel’s stake in AIS is currently 23%.

Singtel and AIS previously held discussions regarding the Singaporean group increasing its stake in the Thai operator in 2014, but the negotiations were put on hold due to political and economic instability in the nation.

But Bloomberg’s source stated that the companies involved believe there is renewed opportunity to pursue a deal now that the situation is becoming more stable.

Singtel’s regional mobile associates are important to the operator’s financial performance. The company’s recently announced first quarter results  show that while the company’s net profit grew just 2%, pre-tax earnings contributions from the company’s regional associates climbed 19%.

Temasek is meanwhile under pressure to pursue investments with a greater potential for returns after reporting the first decline in its portfolio for seven years during the financial year ending in March.