Latest news with #DavidTeoh
Business Times
2 days ago
- Business
- Business Times
Keppel DC Reit proposes sale of M1-issued NetCo bonds, preference shares
[SINGAPORE] The manager of Keppel DC Real Estate Investment Trust (Reit) on Monday (Aug 11) proposed the disposal of all its NetCo bonds and preference shares issued by network operator M1. This comes after parent company Keppel announced that it will sell M1's telco business to Simba Telecom , a mobile network operator, for S$1.43 billion. Keppel will receive nearly S$1 billion for its 83.9 per cent effective stake in M1. Simba – whose parent company is Tuas Ltd, which is owned by Australian businessman David Teoh's TPG Telecom – is expected to create more revenue pools and career opportunities from its combination with M1. NetCo is a subsidiary of M1 and holds some of the telco's mobile, fixed and fibre assets. It also has a network services agreement with M1. On Dec 22, 2021, Keppel DC Reit subscribed to S$88.7 million in bonds issued by NetCo through its trustee, Perpetual (Asia). Under the terms, the Reit will receive S$11 million a year, comprising both the principal amount and interest, for a period of 15 years from the date of issuance. Under the same transaction, Keppel DC Reit also subscribed to 100 per cent of the preference shares issued by NetCo, for S$1 million. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up These shares entitle the Reit to have 50 per cent representation on NetCo's board of directors – a move intended to give it additional protection for its investment in the bonds. The NetCo bonds and preference shares will be sold to an unrelated third party, which is a Singapore-incorporated holding company, Keppel DC Reit's manager said. Assuming the sale was completed on Monday, the buyer will have to pay around S$79.2 million, the manager said. This amount comprises S$77.2 million as a principal amount for the NetCo bonds, S$1 million in accrued interest, and a principal amount of S$1 million for the preference shares. The deal is subject to clearance from the Infocomm Media Development Authority. Units of Keppel DC Reit were trading flat at S$2.31 as at 3.30 pm on Monday.
Straits Times
2 days ago
- Business
- Straits Times
ST Explains: Who owns Simba, the company that is buying M1?
Sign up now: Get ST's newsletters delivered to your inbox Simba Telecom will be acquiring M1 from Keppel in a deal worth $1.43 billion. SINGAPORE - Keppel will be selling the telecommunications business of its subsidiary M1 to rival Simba Telecom for $1.43 billion. The sale has been widely anticipated by market watchers. But speculation had centred on StarHub instead of Simba as the likely buyer. Simba and M1 have the least overlap in resources, which Keppel said is expected to create further revenue pools and career opportunities. The Straits Times explains who owns Simba, Singapore's fourth telco, and what the sale means to consumers. Who is Simba? Simba, previously known as TPG Singapore, became the Republic's fourth telco in 2016 after winning an airwave auction held by then regulator Infocomm Development Authority, which has since become the Infocomm Media Development Authority. Simba is owned by Australia-listed company Tuas, incorporated in March 2020 as part of the Australian TPG Group. After a merger between TPG Australia and Vodafone Hutchison Australia in June 2020, the Singapore mobile business was separated from the broader TPG Group and all its shares were transferred to Tuas. In 2022, the telco rebranded itself after usage rights to the TPG brand expired. Top stories Swipe. Select. Stay informed. Singapore Keppel to sell M1's telco business to Simba for $1.43b, says deal expected to benefit consumers Business Singtel, StarHub shares fall after announcement of Keppel's M1 sale Singapore Simba-M1 deal is S'pore's first telco merger, after years of liberalisation Singapore Hyflux issued preference shares to fund Tuaspring as it had problems getting bank loans: Prosecution Singapore S'pore Govt asks inactive political parties including Barisan Sosialis for proof of existence Singapore Man's claim amid divorce that his mother is true owner of 3 properties cuts no ice with judge Opinion Anwar's government: Full house but plenty of empty offices Simba, which operates only in Singapore, spent several years rolling out its mobile and fixed broadband networks, and launched commercial services here only in 2020. Its first product was a SIM-only plan that offered 50GB of data for $10 monthly – the cheapest in the market. Australian billionaire David Teoh is executive chairman of Tuas and chairman of Simba. Simba's chief executive officer is Mr Richard Tan, who is based in Singapore. What is Simba known for? Simba is known for its affordable and generous mobile plans, starting at $5 per month for 400GB of data for seniors. Its 5G plans range from 400GB to 700GB, offering seamless connectivity across regional destinations. The most basic plan for adults, SuperRoam10, comes with 400GB of data for Singapore, Malaysia, Indonesia and Hong Kong at a price of $10 monthly. How big is Simba in Singapore? Simba had more than one million mobile subscribers as at December 2024. It is the fourth-largest telco here. Singtel commands half of the total number of mobile subscribers here, with 4.5 million customers, while StarHub and M1 each has about two million subscribers. How will Simba's acquisition of M1 affect customers? Keppel said the deal is expected to benefit consumers through market consolidation and harnessing synergies between the two telcos. Simba and M1 have the least overlap in resources, which Keppel said is expected to create further revenue pools and career opportunities. 'The proposed transaction offers a strategic path to sustainable growth for Singapore's telco sector,' said Keppel CEO Loh Chin Hua. '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.'
Forbes
2 days ago
- Business
- Forbes
Australian Billionaire David Teoh's Simba Telecom To Buy Singapore's M1 In Deal Valued At $1.1 Billion
Simba Telecom—a unit of billionaire David Teoh's Australia-listed Tuas Ltd.—is buying M1 in a deal valuing the Singapore-based mobile carrier at S$1.4 billion ($1.1 billion). Keppel has agreed to sell its 83.9% stake in M1 to Singapore-based mobile operator Simba for cash proceeds of close to S$1 billion, the company said in a statement on Monday. Keppel will retain M1's Information and Communications Technology businesses, which complements the conglomerate's connectivity operations such as data centers and subsea cables. While the transaction will result in a S$222 million loss for state-linked Keppel, the deal 'crystalizes value from Keppel's investment in M1 over the years,' the company said. The sale of M1, which Keppel founded in 1994 to compete with telecom giant Singtel, is expected to be completed in a few months subject to regulatory approvals. The divestment unlocks value for Keppel, which plans to use the cash proceeds to fund growth opportunities, lower debt levels and reward shareholders. Keppel said it has identified a portfolio of non-core assets (worth more than S$14 billion) that it plans to sell. 'M1 and Simba are a highly synergistic combination—together, they can scale more efficiently, optimize infrastructure and accelerate 5G and digital investments,' Loh Chin Hua, CEO of Keppel, said in the statement. Simba's parent Tuas reported a first-ever net profit of S$3 million in its first half ended January as revenue jumped 34% to S$73.2 million. Tuas expects to remain profitable for the rest of the fiscal year. Simba had 1.2 million mobile subscribers and over 14,000 broadband customers as of January. Tuas, which was spun off as a separate listed entity after its parent TPG Telecom merged with Vodafone Australia in March 2020. Teoh, 69, an Australian citizen of Malaysian descent, is the founder and former executive chairman of TPG Telecom. He has a real-time net worth of $2.1 billion, according to Forbes.
The Australian
05-08-2025
- Business
- The Australian
TPG Telecom to return $3bn to shareholders after Vision Network sale
TPG Telecom wants to transform its top-heavy ownership legacy into a sharemarket force capable of being a stronger competitor to Telstra and Optus, promising most of the $4.7bn it reaped from the sale of Vision Network as an investor windfall. The nation's third-biggest telco finalised the sale of Vision, a competitor to the NBN, on Tuesday to Macquarie and Aware Super-backed Vocus, announcing $3bn of the proceeds would go to existing shareholders. It will enable TPG to do a capital reduction of up to $1.61 per share and give minority investors — which combined own 23 per cent of the company — the option to reinvest up to $688m in an effort to boost the number of shares available to be traded on-market. Four shareholders controlling 77 per cent collectively dominate TPG's register: Vodafone Group in the UK, Hong Kong's CK Hutchison Holdings, Soul Patts and company founder David Teoh. But their deep pockets are no match for a more liquid stock. Chief executive Inaki Berroeta said the major shareholders supported diluting themselves as a way to 'increase value'. 'I mean, that will have a very beneficial impact on our share price,' Mr Berroeta said. 'In the past the limited free float was really something that was making it very difficult for certain investors to come into our registry, so we also wanted to fix that.' TPG will use the rest of the sale proceeds to pay down about $1.7bn in debt. 'We always want to maintain this investment grade profile,' Mr Berroeta said. Its shares fell 2c to $5.50. Ratings agency S&P took issue with the proposal and assigned TPG's BBB credit rating a negative outlook, citing execution risks on its capital management plan. 'Completion of these transactions as anticipated will be important to the company maintaining its debt-to-EBITDA ratio below 2.75x,' S&P said. 'Downward pressure on the rating could emerge if TPG's fully adjusted debt-to-EBITDA ratio exceeds 2.75x on a sustained basis. This could occur if TPG does not complete its capital reinvestment plan, takes a more aggressive stance on financial policy, or incurs a material deterioration in the group's competitive position that erodes its earnings and cash flow.' S&P said TPG maintaining its market share and margins in its mobile and fixed line services would be key to restoring a stable outlook. 'We also expect TPG to maintain favourable access and infrastructure sharing arrangements, which should bolster its competitive position over time,' S&P said. The sale follows TPG halting a $6.3bn sale and leaseback of its non-fibre mobile assets with Vocus in November 2023, citing the complexity of that transaction. Under the terms of the new sale agreement, Vocus and TPG will enter a long-term strategic partnership. Vocus will provide TPG with ongoing access to fibre infrastructure, which it said would deliver 'enduring network planning and access certainty'. Mr Berroeta said the sale represented a 'simpler operating model' to the 2023 talks — hence the $1bn drop in Vocus's original offer — and was a great outcome for large customers of fixed telecommunications services in Australia. He said the deal unlocked the value of TPG's fixed infrastructure assets while strengthening its financial position and creating a 'more focused and streamlined business with significant optionality' to take on bigger rivals. Crucially, it finally tidies up the $15bn merger between TPG and Vodafone in 2020. 'When we did the merger, we ended up with a strong position in the consumer market on mobile and on broadband,' Mr Berroeta said. 'We had a long list of assets that we were considering in terms of what was going to be their role in the future of TPG, and a significant amount of systems that were the consequence of multiple M&A. What we wanted to do was create a company that was lean, that was very focused on the type of services that we deliver to our customers. 'We offer telco services. We don't go into things that are too far from it. We don't go into electricity, insurance, health, nothing like that. We want to be quite focused in what we do.' Mr Berroeta said TPG had been making inroads, with its $1.6bn agreement to share mobile towers, which was launched earlier this year, doubling the size of its network 'for economically very little impact to us'. 'With this transaction, the focus is similar. We enter a very long term agreement where we are going to be using that infrastructure. 'The payments for the usage of that infrastructure will be not dependent on the growth of our current business. So that is really the TPG that we look (to create) … offering a very focused service to consumers, that is highly important to them and something that people today cannot live without. 'And we do it with the best cost structure, both in terms of the operating cost of the company, but also in terms of how we use our investments.' TPG and Telstra have feuded over the size of Telstra's network, with TPG accusing Telstra of being disenguous because Telstra's three million square kilometres of coverage claim relies on external antennas. Read related topics: Telstra Jared Lynch Technology Editor Jared Lynch is The Australian's Technology Editor, with a career spanning two decades. Jared is based in Melbourne and has extensive experience in markets, start-ups, media and corporate affairs. His work has gained recognition as a finalist in the Walkley and Quill awards. Previously, he worked at The Australian Financial Review, The Sydney Morning Herald and The Age. Politics The Productivity Commission has proposed giving tech giants free access to Australian content for AI training, sparking fears creators will miss out on compensation. Nation Brisbane Catholic Education schools involved in a pilot writing program have achieved NAPLAN growth rates eight times higher than state counterparts.
Yahoo
18-02-2025
- Business
- Yahoo
Tuas Limited's (ASX:TUA) most bullish insider is Top Key Executive David Teoh, and their holdings value went up by 3.7% last week
Insiders appear to have a vested interest in Tuas' growth, as seen by their sizeable ownership The top 2 shareholders own 58% of the company Institutional ownership in Tuas is 10% To get a sense of who is truly in control of Tuas Limited (ASX:TUA), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 39% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Clearly, insiders benefitted the most after the company's market cap rose by AU$112m last week. Let's delve deeper into each type of owner of Tuas, beginning with the chart below. Check out our latest analysis for Tuas Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. As you can see, institutional investors have a fair amount of stake in Tuas. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Tuas' earnings history below. Of course, the future is what really matters. Hedge funds don't have many shares in Tuas. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Tuas' case, its Top Key Executive, David Teoh, is the largest shareholder, holding 37% of shares outstanding. In comparison, the second and third largest shareholders hold about 21% and 4.9% of the stock. A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 58% stake. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own a reasonable proportion of Tuas Limited. Insiders own AU$1.2b worth of shares in the AU$3.2b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently. The general public, who are usually individual investors, hold a 28% stake in Tuas. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. We can see that public companies hold 21% of the Tuas shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together. While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Tuas . If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
