Singtel confirms talks over Optus stake sale amid regulatory pressure

Singapore Telecommunications (Singtel) has confirmed it is engaged in discussions with various parties about selling a stake in its Australian subsidiary, Optus. However, the company cautioned that there is no certainty these talks will lead to a deal.

Optus, which Singtel has owned since 2001, is a major contributor to the group's revenue. In the financial year ending March 2026, Optus reported operating revenue of approximately A$8.35 billion (US$5.8 billion), representing about half of Singtel's total earnings. This marks an increase from the previous year's A$8.2 billion.

The potential stake sale occurs amid heightened regulatory pressure on Optus. The telecommunications provider has been under intense scrutiny following two significant outages of Australia's emergency call service. These incidents, which impacted thousands of users and were linked to four deaths, led to the departure of two senior executives, including the finance chief.

Australia's communications regulator recently launched Federal Court proceedings against Optus Mobile concerning a September 2025 outage. The Australian Communications and Media Authority alleges Optus breached legal obligations on 1,005 occasions by failing to provide access to the emergency call service and ensure calls were properly connected. The regulator is seeking penalties of up to A$250,000 per violation.