<article>Star Media is divesting its stake in CityNeon and Singtel is reducing its stake in NetLink NBN Trust.</article>

Star Media is divesting its stake in CityNeon and Singtel is reducing its stake in NetLink NBN Trust.
<h3 style="text-align: justify;">Star Media to divest stake in Cityneon Holdings</h3>
Shareholders of <a style="color: #000080;" href="http://dealstreetasia.com/tag/star-media-group" target="_blank" rel="noopener noreferrer">Star Media Group</a> have approved the sale of the firm&#8217;s 52.51 per cent stake in <a style="color: #000080;" href="http://dealstreetasia.com/tag/cityneon" target="_blank" rel="noopener noreferrer">Cityneon Holdings</a>. This would trigger a mandatory general offer of 90 cents for each share. The purchaser is Lucrum 1 Investment, with a consideration of S$115.6 million.
Lucrum 1 Investment is an investment holding company controlled by three key directors. Ron Tan, CEO of Cityneon, owns a 15.5 per cent stake in the vehicle, 76 per cent of the firm is held by Chinese investment holding company Massive Right Investments, and the remaining 8.5 per cent is held by Mutual Power International.
According to analysts from UOB Kay HIan, the offer price is unattractive for minority shareholders and does not represent a fair valuation. Analysts believe that the offeror intends to keep the public listing status of Cityneon in order to ease access to capital markets.
Last month, Cityneon reported it expects to acquire its third intellectual property (IP) by the end of Q3 2017. An earnings accretive M&amp;A deal is likely to boost the company&#8217;s value.
<h3 style="text-align: justify;">Singtel to divest majority stake in NetLink NBN Trust</h3>
<a style="color: #000080;" href="http://dealstreetasia.com/tag/singtel" target="_blank" rel="noopener noreferrer">Singapore Telecommunications (Singtel)</a> has entered into a unit purchase agreement with the trustee-manager of <a style="color: #000080;" href="http://dealstreetasia.com/tag/netlink-nbn-trust" target="_blank" rel="noopener noreferrer">NetLink NBN Trust</a> to divest its stake in NetLink Trust on the listing date for an aggregate consideration of S$1.9 billion.
This will see it reduce its stake to 24.99 per cent, which will be held through its wholly-owned subsidiary, Singtel Interactive. It comprises a cash consideration of S$1.1 billion, as well as a quarter of the unit in the trust.
Net proceeds from the IPO will be used for debt repayment, re-investments into its existing businesses, acquisitions, and other capital management initiatives.
“As the sole appointed network company for Singapore’s Next Generation Nationwide Broadband Network, NetLink Trust plays a fundamental role in the delivery of fibre services throughout Singapore, and is well-positioned to benefit from the digitalisation of the Singapore economy and the government’s Smart Nation initiative,” says Singtel Group CEO Chua Sock Koong.
“This is a very positive outcome that serves the best interests of all stakeholders. We remain invested in NetLink Trust’s long-term growth potential,” Chua adds.
Also Read: <a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/singtels-netlink-trust-launches-up-to-1-95b-singapore-ipo-76088/">Singtel’s broadband arm NetLink Trust launches up to $1.95b IPO</a>

Star Media will exit Cityneon while Singtel reduces stake in NetLink NBN Trust to 24.99%.

Singapore: Star Media to exit Cityneon; Singtel reduces stake in NetLink NBN Trust

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Singapore: Star Media to exit Cityneon; Singtel reduces stake in NetLink NBN Trust

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