Singtel sells US digital marketing unit for $239 million

A man looks out of a window under the Singtel sign at its headquarters in Singapore on February 12, 2015. REUTERS/Edgar Su GLOBAL BUSINESS WEEK AHEAD

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[Reuters]- Singapore Telecommunications (STEL.SI) said Tuesday it will sell its loss-making digital marketing arm Amobee to London-listed Tremor International (TRMR.L) for $239 million. business.

Singtel launched a strategic review of US-based Amobee last year after posting an impairment charge of S$589 million ($424.9 million). (

The division, which Singtel acquired in 2012 for $321 million, also posted negative core earnings in the second half due to weak advertising revenue.

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“We are actively restructuring our portfolio to ensure optimal allocation of resources to new growth drivers and enhance shareholder value,” Singtel CEO Yuen Quang Moon said in a statement. there are,” he said.

Southeast Asia’s largest telecommunications company said net gains from the sale after the transaction, which is expected to close by September, are estimated at about $197 million.

Digital advertising firm Tremor will finance the acquisition with existing cash resources and a new $100 million credit line, the company said.

Moelis & Company advised Singtel on the sale.

($1 = 1.3862 Singapore Dollar)

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Reported by Navya Mittal, Bangalore. Edited by Devika Symnath

Our Standards: Thomson Reuters Trust Principles.

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