BUYOUT AND DELISTING
By September 2018, M1’s share price had dropped by almost 60 per cent since its high in 2015.
That same month, Keppel and SPH offered to buy shares they did not already own in M1. The companies said then the move was to “arrest the decline in M1 shareholder value through a combination of transformational efforts which are expected to take several years”.
The deal would allow M1 to cooperate further with other Keppel units and allow SPH to provide digital content through M1’s mobile platform, the companies said. At that point, the companies valued the telco at S$1.9 billion.
In December, Keppel and SPH announced their “firm intention” to make a voluntary general offer.
By January 2019, the two companies launched an offer to buy out majority shareholder Axiata and gain control of M1. That offer was accepted the following month and Axiata sold its 28.7 per cent stake.
It meant Keppel and SPH collectively owned 90.15 per cent of M1’s shares.
To be listed on the stock exchange, the total number of shares in a company that is issued to the public must be at least 10 per cent. With M1 no longer meeting this requirement, it was delisted from the SGX in April 2019.
In 2020, a joint venture between M1 and Starhub won the rights to build Singapore’s two nationwide 5G networks. The other telco was Singtel.
SALE
In its announcement on Monday, Keppel said it would receive S$1 billion in cash proceeds for its stake in M1.
Keppel will retain the information and communications technology business, including data centres and subsea cables.
The company said it hopes to complete the proposed sale “over the next few months”, adding that Simba had submitted the strongest bid among interested parties.
Simba is wholly owned by Australia-listed Tuas. In a separate statement, Tuas said it is looking to raise at least A$416 million (US$271 million) through a placement and share purchase plan.
The deal is subject to regulatory approval by Singapore’s Infocomm Media Development Authority (IMDA). Its considerations include ensuring there is “no significant lessening” of competition.
