SingTel will offer all Optus shareholders three alternatives for each Optus share. The first is a Share Alternative of 1.66 Sing Tel shares. The second is a Share and Cash alternative of 0.8 Sing Tel shares plus A$2.25 in cash. The final option proposed to Optus is a Share, Cash and Bond alternative of 0.54 SingTel shares plus A$2.00 in cash plus A$0.45 in SingTel US$ denominated bonds.
Shareholders who accept the Share, Cash and Bond Alternative may receive additional cash and bonds (as may become available as a consequence of shareholders accepting the Share Alternative or the Share and Cash Alternative) in return for receiving less than 0.54 SingTel shares via Special Debentures. To the extent additional cash and bonds are available, the additional amount will be made available first in bonds, then cash, at a rate of A$2.74 per SingTel share.
The effective purchase price per share range of A$3.94 to A$4.23 implies an equity purchase price range of A$14.9 billion to A$16.0 billion, which represents premiums ranging from 0.9% to 11.3% over the same periods.
It is intended a formal offer document will be sent to shareholders within eight weeks.
