Keppel, Singtel to sell Radiance Communications to Telechoice

Singtel retail outlet at Tiong Bahru PlazaSingtel retail outlet at Tiong Bahru Plaza; photo taken pre-Covid

Keppel Corp. is divesting its 50 percent stake in Radiance Communications, which is a 50:50 joint venture with Singtel, to Telechoice International‘s subsidiary NxGen Communications for S$625,000, according to a filing to SGX Tuesday. 

Singtel is also divesting its 50 percent stake in the joint venture to NxGen for the same consideration, the Keppel filing said. 

Keppel Corp.’s Radiance Communications stake was held by Keppel Communications (KCOM), a wholly owned subsidiary of Keppel Telecommunications & Transportation, the Keppel filing said.

Before the deal is completed Radiance Communications will distribute dividends and undertake a capital reduction to return around S$4 million in cash to KCOM and Singtel, to be divided equally, the filing said. KCOM will receive total proceeds, including the distributions, of around S$2.6 million, the Keppel filing said.

Singapore state-owned investment company Temasek Holdings has a deemed interest of around 50.50 percent of Telechoice as of 8 March, and also holds an around 52.2 percent interest in Singtel and an around 21 percent interest in Keppel, the filings said.

Radiance Communications is an info-communications system integrator and service provider in unified communications (UC) and contact center (CC) services for the government sector and the enterprise market in Singapore and Malaysia. 

NxGen provides similar enterprise services for the healthcare, financial services and government sectors, Telechoice said in a separate filing to SGX.

Telechoice said the deal would provide operational synergies. 

Vincent Lim, president and CEO of Telechoice, said the ICT division has been pivoting to service-based offerings. 

“To this end, UC and CC solutions are instrumental pillars of growth, and this acquisition is a clear strategic fit to advance its leadership position in this space, particularly for the financial services, government and manufacturing sectors which Radiance has sizable market share,” Lim said in the statement.

“It will also enable the division to boost its maintenance revenue with the addition of Radiance’s huge base of maintenance customers,” he said. 

The deal is expected to be completed in the second half of this year.

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