Singtel to offload U.S. digital marketing unit for $239 million – Reuters.com

A man looks out of the window under a Singtel signage at their head office in Singapore February 12, 2015. REUTERS/Edgar Su GLOBAL BUSINESS WEEK AHEAD

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July 26 (Reuters) – Singapore Telecommunications (STEL.SI) said on Tuesday it would sell its loss-making digital marketing arm Amobee to London-listed Tremor International (TRMR.L)for $239 million in a bid to sharpen its focus on core businesses.

Singtel last year started a strategic review of U.S.-based Amobee after the unit booked an impairment charge of S$589 million ($424.90 million). (https://reut.rs/3z6jgma)

The unit, which Singtel bought in 2012 for $321 million, also reported negative core earnings in the second half due to weaker advertising revenue.

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“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.

($1 = 1.3862 Singapore dollars)

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Reporting by Navya Mittal in Bengaluru; Editing by Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.

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