SINGAPORE, On Monday (Aug 11), asset manager Keppel announced it will sell M1’s telecom business to Simba Telecom for an enterprise value of S$1.43 billion (US$1.11 billion).
Keppel will receive S$1 billion in cash for its 83.9% stake in M1 Limited. It will keep M1’s fast-growing information and communications technology (ICT) operations, which include data centers and subsea cables.
Keppel expects to complete the sale “within the next few months” and said the deal will benefit Singapore’s telecom industry and consumers by consolidating the market and creating synergies between the two telcos, both known for innovation. The company highlighted that this will combine M1’s digitally advanced, cloud-native network and its ability to offer personalized services with Simba’s innovative digital consumer model.
Calling the sale a “strategic path to sustainable growth” for Singapore’s telecom sector, Keppel CEO Loh Chin Hua said, “M1 and Simba are a highly complementary pair. Together, they can scale more efficiently, optimize infrastructure, and accelerate 5G and digital investments. This will improve service quality and help build a more resilient, future-ready telecom industry.” Keppel also noted that the sale aligns with its strategy as an asset-light global manager and operator, allowing it to focus more on digital infrastructure within its connectivity segment.
The company expects an accounting loss of about S$222 million from the transaction. It said Simba made the strongest bid and that the merger is expected to unlock new revenue opportunities. Simba is fully owned by Australian-listed Tuas. Tuas said it plans to raise at least A$416 million (US$271 million) through a share placement and purchase plan. Tuas described the acquisition of M1’s telecom business as “transformational,” saying it will expand Simba’s mobile presence, speed up its broadband growth, and give it an established enterprise platform.
Regulatory filings show Simba currently holds 1.5% of Singapore’s prepaid mobile market, 14.4% of postpaid mobile, and 0.9% of broadband. M1 has 13.5% prepaid, 23.9% postpaid, and 15% broadband market shares. If approved, Simba aims to capture 15% prepaid, 38.3% postpaid, and 15.9% broadband market shares in Singapore.
M1’s telecom operations (excluding the parts Keppel will retain) generated revenues of S$806.1 million and EBITDA of S$195.4 million for the financial year ending April. Founded in 1994 with Keppel as a founding investor, M1 launched commercial services in 1997 and serves over two million customers with mobile, fixed-line, and fiber services.
Simba is Singapore’s fourth fully licensed mobile operator with 4G and 5G spectrum rights. Since launching commercially in 2020 (formerly known as TPG Singapore), it has reached 500,000 active subscribers as of April 2022. Keppel’s shares, currently under trading suspension due to the deal, have risen 25.4% year-to-date, outperforming the 11.9% gain in Singapore’s benchmark index. Shares closed at S$8.58 on August 8.
The deal awaits approval from Singapore’s Infocomm Media Development Authority (IMDA). IMDA confirmed both parties have signed the sale and purchase agreement and that it will review the transaction under the Telecom and Media Competition Code, ensuring no significant harm to competition while benefiting consumers and supporting sustainable market growth.
