Singtel’s wholly owned subsidiary Singtel Enterprise Security (US) has finalised an agreement with MC2 Titanium to sell all its equity interest in its Chicago-based cyber-security arm, Trustwave, for an enterprise value of US$205 million (S$280.6 million), comprising a secured note and cash.
This move follows Singtel’s strategic review of its 98 percent stake in Trustwave, initiated in 2021, post-acquisition for U$770 million in 2015.
The decision to divest the stake comes after Singtel incurred an impairment charge of US$ 336 million during the second half of 2021.
The company expects the final transactions to be completed by the fourth quarter without any material impact on the group for fiscal year 2024.
Trustwave will soon after be reclassified as a subsidiary held for sale and deconsolidated from the group’s financials.
Singtel said the proposed sale will enable it to refocus business in the Asia Pacific and improve shareholder value by optimising resource allocation.
The telco has already offloaded several tower assets and its US digital media and advertising subsidiary Amobee. Recently, Singtel sold a 20 percent stake in its data centre business, Singtel Digital InfraCo, to KKR for S$1.1 billion, with a view to using the investment to scale up the business and capitalise on regional growth opportunities.
