SINGAPORE: The Infocomm Media Development Authority (IMDA) will assess Keppel Ltd’s proposed sale of part of its telecommunications subsidiary, M1, to Simba Telecom to ensure it meets regulatory requirements.
In a statement, IMDA said its considerations in approving mergers and acquisitions in the sector include ensuring there is no significant lessening of competition, that transactions bring benefits to consumers, and that they support sustainable competition and growth in Singapore’s telecommunications market.
The authority confirmed it had been informed that Keppel and Simba have signed a sale and purchase agreement. All such deals, IMDA stressed, are subject to regulatory approval and will be reviewed under its competition guidelines for the telecommunications and media industries.
Earlier on Monday (11 Aug), Keppel announced that it had entered into a share purchase agreement with Simba to divest M1’s telecommunications business for an enterprise value of S$1.43 billion.
Keppel currently holds an 83.9% stake in M1 and expects to receive close to S$1 billion in cash proceeds from the deal. The company will retain M1’s information and communications technology (ICT) business.
Keppel said it hopes to complete the transaction within the next few months, subject to the necessary regulatory clearances.
