2nd UPDATE: SingTel To Up Stake In Thailand's Advanced Info For About S$328 Million

Singapore Telecommunications Ltd. (Z74.SG) said it will raise its stake in Thailand's Advanced Info Service PCL (ADVANC.TH) to 23.32% at a cost of about S$328 million ($260 million), a move seen as a strategy to maximize value from of its existing businesses.

In a filing to the Singapore Exchange late Friday, SingTel, Southeast Asia's biggest telecommunications firm by revenue, said that Shin Corp PCL (SHNZY, INTUCH.TH) has agreed to sell 61 million shares in Advance Info Services.

SingTel currently holds a 21.27% In Advanced Info Service.

Thailand's Shin Corp, which is controlled by Singapore's state investment company Temasek Holdings Pte. Ltd., owns a 42.6% stake in Advanced Info Services.

SingTel, which is 55% owned by Temasek Holdings, has said it continues to review investment opportunities in communications in Asia and emerging markets, and that it will focus on strengthening the operating and financial performance of its associates.

In addition to Advanced Info Service, SingTel also holds significant stakes in foreign mobile operators such as India's Bharti Airtel Ltd.(532454.BY), Indonesia's Telkomsel, Pakistan's Warid Telecom, the Philippines' Globe Telecom Inc. (GLO.PH) and Pacific Bangladesh Telecom.

The Singaporean company in the past has increased its stake in its associates such that of Bharti and Globe Telecom. While some analysts say SingTel has been conservative in its acquisition strategy, the telecommunications firm has maintained that it is open to opportunities and would go ahead if a strategic fit is found.

As part of its plans to look at other emerging markets, SingTel last year signed an agreement with Portugal Telecom SGPS SA (PTC.LB, PT) to collaborate on fiber optic and Internet Protocol Television-based pay television services and applications for fixed and wireless networks.

SingTel has more than 416 million mobile customers in 25 countries, including Bangladesh, India, Indonesia, Pakistan, the Philippines and Thailand.

SingTel said the stake increase in Advanced Info Service is subject to regulatory and Shin Corp shareholders approvals.

It said that the purchase consideration with Shin Corp was arrived at on "a willing-seller willing-buyer basis" and will be payable in cash upon completion of the acquisition.

The acquisition will not have a material impact on SingTel's earnings per share nor its net tangible assets per share for the financial year ending in March 2012, it said.

-By P.R. Venkat, Dow Jones Newswires; [phone]; [e-mail]