Singtel to Repurchase Shares Up To $1.55 Billion

The Singapore Telecommunications Limited (Singtel) on Thursday said that its Board of Directors has authorised the company’s first share buyback programme of up to $1.55 billion as part of the Group’s active capital management strategy to drive sustained growth and value for shareholders.

The Group’s value realisation share buyback programme will be administered in accordance with Singtel’s Share Purchase Mandate, which allows the purchase of up to 5% of its total issued shares (excluding treasury shares and subsidiary holdings) and is subject to shareholder approval at each annual general meeting.

The programme, which will be delivered over the course of three years until financial year 2028, involves the purchase of shares in the open market that will subsequently be cancelled. The buybacks will be carried out at management’s discretion and is subject to market conditions. This programme is in addition to share buybacks for the Group’s employee share schemes.

Funding for the share buybacks will be underpinned by excess capital from the Group’s asset recycling proceeds. In May 2024, Singtel set a mid-term asset recycling target of $4.65 billion under its Singtel28 growth plan which it is now raising to $6.98 billion.

The value realisation share buyback programme is the latest capital management initiative undertaken by Singtel, following a change in dividend policy in May 2024 to include a value realisation dividend in addition to a core dividend. The value realisation dividend was introduced to return excess capital to shareholders.

Robust Capital Management

Singtel’s Group CFO Arthur Lang said that their value realisation share buyback programme reflects the robustness of our capital management approach and balance sheet. Together with Singtel’s dividend policy which includes the value realisation dividends, this move reflects the company’s confidence in the Group’s long-term value and its commitment to deliver sustained value for shareholders, he said.

Building on the Group’s proven track record in asset recycling, and the opportunities they were seeing, they were increasing the medium-term capital recycling target to $6.98 billion to further fund business growth and return excess capital to the shareholders, he added.

The Group’s value realisation share buyback programme will be administered in accordance with Singtel’s Share Purchase Mandate, which allows the purchase of up to 5% of its total issued shares (excluding treasury shares and subsidiary holdings) and is subject to shareholder approval at each annual general meeting.

The programme, which will be delivered over the course of three years until financial year 2028, involves the purchase of shares in the open market that will subsequently be cancelled. The buybacks will be carried out at management’s discretion and is subject to market conditions. This programme is in addition to share buybacks for the Group’s employee share schemes.