Singapore Telecommunications, better known as Singtel, is offloading its loss-making digital marketing arm Amobee to London-listed Tremor International for $239 million as it moves to sharpen focus on its key businesses.
Singtel, which bought US-based Amobee in 2012 for $321 million, started a strategic review last year after the unit booked an impairment charge of S$589 million ($424.90 million).
The unit reported negative core earnings in the second half due to weaker advertising revenue.
“We are actively reshaping our portfolio to ensure optimal allocation of resources towards new growth drivers, as well as improve shareholder value,” Singtel chief executive Yuen Kuan Moon said in a statement.
Southeast Asia’s largest telecoms firm said net proceeds from the divestment are estimated to be about $197 million after the deal close, which is expected by September.
Digital advertising firm Tremor expects to fund the purchase with existing cash resources and a new $100 million debt facility, it said.
Moelis & Company advised Singtel on the divestment.
- Reuters with additional editing by Sean O’Meara
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