Singtel will divest its US digital media and advertising subsidiary Amobee to London- and NASDAQ-traded advertising technology firm Tremor International for an enterprise valuation of $239 million. The net proceeds after deducting transaction costs and adjustments such as debt and working capital is estimated to be $197 million at closing. The divestment is in line with Singtel’s strategic reset to sharpen its business focus and recycle assets and capital into growth areas with higher returns. In May, Singtel announced that Amobee, a non-core business, was classified as a subsidiary held for sale in March this year.
Yuen Kuan Moon, Singtel Group Chief Executive Officer, said, “This divestment reflects our resolve in executing to our strategic reset. We are actively reshaping our portfolio to ensure optimal allocation of resources towards new growth drivers, as well as improve shareholder value.”
Completion of the Amobee divestment is expected by September 2022 and is subject to the fulfilment of certain conditions under the Sale and Purchase Agreement, including the receipt of relevant regulatory approvals.
Following the Amobee divestment, Singtel will cease to hold any equity interest in the Amobee business.