FAQ: What can I do with my Singtel special discounted shares?
Here’s what you need to know about the transfer of Singtel special discounted shares to the holders' own CDP accounts.
by Ang Hwee Min · CNA · JoinRead a summary of this article on FAST.
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SINGAPORE: Singaporeans who hold Singtel's special discounted shares in their Central Provident Fund (CPF) accounts can withdraw the sales proceeds in cash from Wednesday (Apr 8) if they choose to sell them.
These shares will be transferred from their CPF accounts to their Central Depository (CDP) accounts in November this year.
What are these special discounted shares and what should you do if you have them? Here’s what you need to know.
What are the SDS shares and who has them?
The special discounted shares scheme was introduced in October 1993, when Singtel became a public company. Through the scheme, Singaporeans who were CPF members could buy Singtel shares at a discounted price during its initial public offering in 1993 and again in 1996.
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The 1993 shares were also known as ST "A" shares, while those sold in 1996 were known as ST2 shares.
The scheme was introduced as part of the government’s plans to make Singapore a share-owning society, giving Singaporeans a greater stake in the country. At the time, the CPF Board was appointed as the trustee.
Singtel is the first and only company that sold shares through this scheme, with more than a million Singaporeans buying shares at the time. Those who held on to their discounted Singtel shares were entitled to loyalty shares, which means they also received additional shares over time.
Now, almost 615,000 Singaporeans hold these shares, said Singtel and the CPF Board.
Today, the youngest holders of special discounted shares are above 50 years old and the median shareholder has about 1,360 shares.
They would have bought shares in 1993 and 1996 for about S$2,000, and received additional loyalty shares equivalent to 40 per cent of their original shareholdings, said the Singtel and the CPF Board.
As such, the median shareholder today would have received about S$5,000 in cumulative dividends, more than covering the CPF savings used to buy the shares and the interest they would have otherwise received in their CPF ordinary accounts.
Why have Singtel and the government agreed to this transfer?
When the scheme was launched 30 years ago, share ownership was not prevalent among Singaporeans, which is why the CPF Board was appointed as the trustee, said Singtel’s group CFO Arthur Lang.
With the prevalence of share ownership in Singapore today, the context has changed. Singtel thinks it is the right time for those who hold special discounted shares to own them directly, which is why the telco requested the share transfer now, he added.
The special discounted shares scheme has met its intent and the legacy trustee arrangement for CPF Board to support share ownership is no longer necessary, said Singtel and the CPF Board in a joint press release on Apr 7.
This is why the government will support the share transfer, the press release read.
The transfer will enable those who hold special discounted shares to consolidate all their holdings in their individual CDP accounts, making them easier to track and trade, said Singtel and the CPF Board.
What does it mean for the SDS shares to be transferred from CPF to CDP? When do the changes take effect?
Currently, if those who hold special discounted shares decide to sell them, the proceeds go to their CPF ordinary accounts.
From Apr 8, subsidiary legislation will be changed to waive CPF’s withdrawal conditions for the sale of Singtel special discounted shares. This means that those who hold special discounted shares and choose to sell them can withdraw the proceeds in cash.
The payment will be made to the shareholders’ registered bank account with the CPF Board, they noted.
A bill to enable the direct transfer of these special discounted shares from the CPF Board to the shareholders was also introduced in parliament on Tuesday.
If the legislation is passed, the special discounted shares will be automatically transferred to the holder’s CDP accounts on Nov 21.
Shareholders who do not have CDP accounts will have their shares transferred to designated CDP accounts created in their names.
Until then, individuals who choose to sell their shares can still retain the proceeds in their CPF ordinary accounts. After that, those who decide to sell their shares can choose to receive the proceeds in cash or retain it in their ordinary accounts.
How do I know if I have SDS shares? Will I be notified?
Those who hold special discounted shares will receive a letter by mail from the CPF Board and Singtel by the end of April, which will inform them of their shares and the options available to them.
Individuals can log in at sds.singtel.com using their Singpass accounts to check if they have the shares or if they have an individual CDP account.
They can also call 1713 for more details.
CPF Board and Singtel are also partnering with the Agency for Integrated Care to reach out to older and more vulnerable SDS holders who may not be as digitally savvy, they said.
This includes more than 20,000 individuals who have been identified as older SDS holders with lower CPF balances and who do not have CDP accounts.
How do I sell the shares?
The shares can be sold through Phillip Securities’ website, at SingPost branches, or through selected Singapore Exchange retail brokers.
Those who already sold their Singtel special discounted shares between Jan 1, 2025 and Apr 7 and had their sales proceeds credited to their CPF accounts can apply to withdraw their proceeds in cash.
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