Seven Group Holdings Ltd : SGT: Acquisition of shares in Vividwireless Group Limited

SINGAPORE TELECOMMUNICATIONS LIMITED (Incorporated in the republic of Singapore) Singapore Company Registration Number: 199201624D ANNOUNCEMENT PURSUANT TO CLAUSE 704 OF THE SGX LISTING MANUAL ACQUISITION OF SHARES IN VIVIDWIRELESS GROUP LIMITED

Singapore Telecommunications Limited today announced that its Australian wholly owned subsidiary, Optus Mobile Pty Limited ("Optus"), has signed an agreement to acquire all the issued shares in Vividwireless Group Limited ("Vividwireless") from Network Investment Holdings Pty Limited ("Network Investment Holdings") for an expected cash consideration of A$230 million.
Network Investment Holdings is wholly owned by Seven Group Holdings Limited.
Vividwireless is the holding company of five wholly owned subsidiaries, one of which, BKAL Pty Limited, holds spectrum licences in the 2.3 GHz band. Vividwireless owns and operates two wireless broadband businesses trading under the brands "vividwireless" and "unwired".
Optus plans to use the acquired spectrum to deliver wireless broadband to households and businesses in metropolitan Australia with LTE-TDD technology. The new network will be integrated with Optus' 1800MHz 4G network to enhance Optus' network capacity and provide increased mobile data speeds for customers.
The purchase price consideration was arrived at on a willing buyer-willing seller basis based on, inter alia, an assessment of Vividwireless' businesses and assets and also taking into account the strategic value of spectrum. Optus will make a separate additional payment to the Australian Communications and Media Authority for the reissue of spectrum licences in accordance with the final determination of the Australian Government on or before the expiry date of the existing licences. The aggregate of the purchase price and reissue fee is not expected to exceed A$280 million. The transaction will be funded from internal sources of funds and debt.
The consolidated net asset value of Vividwireless based on the latest audited consolidated financial statements as at 30 June 2011 was approximately A$11 million.
Completion of the transaction is subject to various conditions precedent including the reissue of the
2.3GHz spectrum licences, and the approvals of the Australian Competition and Consumer
Commission and the Foreign Investment Review Board.
By Order of the Board
Chan Su Shan (Ms) Company Secretary
Dated: 20 February 2012