Singapore Telecommunications (SingTel) moved a step closer to sealing its takeover of Cable & Wireless Optus yesterday with indications United States' authorities had no objections.
The move came as SingTel posted a solid set of results for the year to March, registering a 26 per cent gain in net profit to S$2.32 billion (about HK$9.93 billion), on turnover up 1.2 per cent to S$4.93 billion.
Yesterday attention was fixed on SingTel's proposed A$17 billion (about HK$68.96 billion) takeover of C&W Optus, Australia's second-largest telecommunications company, announced late in March.
The transaction is being considered by the Canberra and Washington administrations, in part because C&W Optus controls vital Australian military communications and uses US-made defence communications equipment.
A US State Department official told reporters 'no additional authorisation is needed' for SingTel to take over C&W Optus' three US-built satellites.
The equipment appears on Washington's 'munitions list' and under the Arms Export Control Act, the State Department must give its approval if the equipment is to be transferred, or leased, to another party.