Singtel, StarHub shares fall after announcement of Keppel's M1 sale
Singtel shares slid 1.3 per cent, while StarHub tumbled 4.9 per cent as at the midday trading break.
SINGAPORE - Shares of Singtel and StarHub fell on Aug 11, following the announcement by Keppel that
it will sell
Singapore's third-largest telco
business M1 to rival Simba Telcom.
Singtel slid 1.3 per cent or 5 cents to $3.93, while StarHub tumbled 4.9 per cent or six cents to $1.16 as at the midday trading break.
Shares of Keppel were halted from trading before the market opened on Aug 11. They had closed down 0.8 per cent at $8.58 last week.
Tuas Limited, the Australia-listed parent company of Simba, also halted trading on the Australian stock exchange on Aug 11.
The deal is subject to approval by the Infocomm Media Development Authority. Keppel hopes to complete the sale, if given the nod, in the next few months.
The asset manager and operator will retain the fast growing information and communications technology (ICT) business, which also includes data centres and subsea cables.
The sale will give Keppel cash proceeds of nearly of $1 billion, though it will make an estimated accounting loss of $222 million on the deal, over the target assets' book value.
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As at Aug 8, Keppel shares have climbed 25.4 per cent to date in 2025, outpacing the 11.9 per cent rise in the Straits Times Index , LSEG data showed.
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