Overview

• Keppel agreed to sell M1’s consumer telecom operations to Simba for S$1.43 billion, receiving about S$1 billion in cash for its 83.9% stake and recording a S$222 million pro-forma accounting loss.
• Keppel will retain M1’s ICT assets, including data centres and subsea cables, to sharpen its focus on digital infrastructure and connectivity services.
• Simba’s owner, Australia-listed Tuas, plans to fund the acquisition with existing cash, an equity raise of approximately A$416 million and fully underwritten bank debt.
• As Singapore’s first major telco consolidation, the deal is subject to Infocomm Media Development Authority approval and customary post-completion adjustments over the next few months.
• Analysts say the combined Simba-M1 entity will emerge as a stronger challenger to Singtel and StarHub but do not expect an immediate shift in consumer pricing dynamics.