SingTel

[freedom]

yeah i do own starhub. i tend to take good will as intangibles into consideration. that is the price the management buys it at. you want to see if they are buying some good cash flow versus the alternatives u consider that. and last i checked their return on assets look much better than optus deals.

AIS yields 20% if i remember, telkomsel 13% but Optus looks closer to 5%.

yes its over and done with, but i hope the culture is not as such that they will always overpay things.

For ais, I would say singtel got a great deal last time.

For Optus, singtel was not lucky, probably paid a fair value or above value.

It is not fair to calculate roa simply like that. Look at this way, according to accounting standards, you can't increase your asset valuation because you are earning more. For legacy asset on both singtel and starhub, they have paid little for the mobile operating license, but they are earning big on those cheap license and they are not allowed to revalue those licenses. Such that their roa could be unbelievably high. Can I buy starhub based on its historical license valuation? Unlikely. The same can be said for Optus, when singtel acquired Optus, just like I am buying starhub, I can never get starhub's roa any more. I only get a reasonable roa, which is significantly lower than starhub. whether Optus offers a reasonable roa, I don't know. But I believe the market would correct its valuation anyway.