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Tuas Terminates Bid for M1 After Long Stop Date Lapses

Regulator scrutiny over Simba's alleged use of unassigned radio frequencies could lead to statutory penalties, leaving the future shape of Singapore's telco market unsettled.

Overview

  • Tuas announced on May 22 that its sale-and-purchase agreement to buy Keppel’s M1 has been terminated after conditions were not met by the long stop date, releasing both parties from further obligations.
  • The Infocomm Media Development Authority is investigating whether Simba used radio frequencies not assigned to it, which IMDA says would breach the Telecommunications Act and could attract fines of S$1 million or up to 10% of turnover.
  • Tuas said Simba is cooperating with IMDA’s probe and will continue to operate in Singapore while the investigation and any regulatory decisions proceed.
  • Keppel allowed the deal to lapse and has taken M1 back under its control, announcing short-term cost and efficiency measures that may include deeper cuts and accelerated automation.
  • Singtel has told regulators it seeks clarity on whether it may pursue consolidation, a decision that will depend on IMDA’s findings and on how spectrum and licence compliance issues are resolved.