SINGAPORE: Keppel Ltd has announced plans to sell a major portion of its telecommunications unit, M1, to Simba Telecom in a deal expected to bring in close to S$1 billion in cash proceeds.
M1 is one of Singapore’s major telecommunications providers while Simba is a newer telecommunications operator which operates the TPG Telecom brand in Singapore.
In a recent statement, Keppel said it has signed a share purchase agreement with Simba to divest M1’s telecommunications business for an enterprise value of S$1.43 billion.
The final price will be adjusted upon completion of the deal, with payment to be made entirely in cash.
Keppel, which owns 83.9% of M1, said the sale would not affect the telco’s information and communications technology (ICT) business, which it will retain.
The proposed transaction is subject to approval from the Infocomm Media Development Authority (IMDA) and is expected to be completed in the coming months.
