SINGAPORE: Asset manager Keppel announced it will sell M1’s telecommunications operations to Simba Telecom for an enterprise value of S$1.43 billion.
Keppel will receive S$1 billion in cash proceeds for its 83.9 per cent stake in M1 Limited.
It will retain M1’s information and communications technology segment, which includes data centres and subsea cables.
The sale, targeted for completion “over the next few months”, is intended to consolidate the local market and leverage synergies between two telcos with a “strong track record for innovation”, Keppel said.
In a statement, the company highlighted the combination of M1’s cloud-native network and hyper-personalised service capabilities with Simba’s digital consumer model.
Keppel’s chief executive Loh Chin Hua described the transaction as “a strategic path to sustainable growth” for Singapore’s telco industry.
“M1 and Simba are a highly synergistic combination. Together, they can scale more efficiently, optimise infrastructure, and accelerate 5G and digital investments, greatly enhancing service quality while contributing to a more resilient, future-ready telco industry,” Loh said.
Keppel added that the divestment aligns with its strategy as an asset-light global manager and operator, enabling greater focus on digital infrastructure within its connectivity business.
The company expects to record an estimated accounting loss of S$222 million from the sale. Simba submitted the strongest bid among interested parties, Keppel noted.
Simba is wholly owned by Australia-listed Tuas.
In a separate filing, Tuas said it would raise at least A$416 million (US$271 million) via a placement and share purchase plan to fund the acquisition.
Tuas described the planned purchase as “transformational”, stating it would expand Simba’s mobile position, speed broadband expansion, and provide an established enterprise platform.
According to a regulatory filing on the Australian Securities Exchange, Simba holds 1.5 per cent of Singapore’s prepaid mobile market, 14.4 per cent of the postpaid mobile market, and 0.9 per cent of the broadband market.
M1, by comparison, has 13.5 per cent of the prepaid mobile market, 23.9 per cent of the postpaid mobile market, and 15 per cent of the broadband market.
Post-acquisition, Simba aims for 15 per cent of the prepaid market, 38.3 per cent of the postpaid market, and 15.9 per cent of the broadband market.
M1’s telecom operations, excluding segments Keppel will retain, generated S$806.1 million in revenue and S$195.4 million in earnings before interest, taxes, depreciation, and amortisation for the financial year ending April.
Founded in 1994 with Keppel as a founding shareholder, M1 launched commercial services in 1997 and now serves over two million customers.
Its offerings span mobile, fixed line, and fibre services.
Simba is Singapore’s fourth fully licensed mobile network operator, holding full 4G and 5G spectrum rights.
It began operations in 2020 under the TPG Singapore brand before rebranding in April 2022.
The company reported reaching 500,000 active subscribers in its first two years.
The deal requires approval from Singapore’s Infocomm Media Development Authority (IMDA).
State media CNA reported that IMDA confirmed both parties have signed the sale and purchase agreement.
IMDA said it would assess the deal under the Telecom and Media Competition Code to ensure no significant reduction in competition.
Its considerations will also include whether the transaction benefits consumers, supports sustainable competition, and promotes growth in the market and in Singapore.
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