Latest news with #SimbaTelecom
Independent Singapore
a day ago
- Business
- Independent Singapore
IMDA to review Keppel's proposed sale of M1 stake to Simba
SINGAPORE: The Infocomm Media Development Authority (IMDA) will assess Keppel Ltd's proposed sale of part of its telecommunications subsidiary, M1, to Simba Telecom to ensure it meets regulatory requirements. In a statement, IMDA said its considerations in approving mergers and acquisitions in the sector include ensuring there is no significant lessening of competition, that transactions bring benefits to consumers, and that they support sustainable competition and growth in Singapore's telecommunications market. The authority confirmed it had been informed that Keppel and Simba have signed a sale and purchase agreement. All such deals, IMDA stressed, are subject to regulatory approval and will be reviewed under its competition guidelines for the telecommunications and media industries. Earlier on Monday (11 Aug), Keppel announced that it had entered into a share purchase agreement with Simba to divest M1's telecommunications business for an enterprise value of S$1.43 billion. Keppel currently holds an 83.9% stake in M1 and expects to receive close to S$1 billion in cash proceeds from the deal. The company will retain M1's information and communications technology (ICT) business. Keppel said it hopes to complete the transaction within the next few months, subject to the necessary regulatory clearances. () => { const trigger = if ('IntersectionObserver' in window && trigger) { const observer = new IntersectionObserver((entries, observer) => { => { if ( { lazyLoader(); // You should define lazyLoader() elsewhere or inline here // Run once } }); }, { rootMargin: '800px', threshold: 0.1 }); } else { // Fallback setTimeout(lazyLoader, 3000); } });
CNA
2 days ago
- Business
- CNA
CNA938 Rewind - Telco shake-up: Simba buys M1 mobile, StarHub fully acquires MyRepublic
Singapore-based Keppel is selling M1's telecom business to rival Simba Telecom for $1.43 billion, marking the first major telco consolidation in Singapore's history. Meanwhile, StarHub is set to take full control of MyRepublic's broadband business. Andrea Heng and Hairianto Diman explore what these moves mean for the industry and how existing customers of all three providers could be affected with Manoj Menon, Founder, Twimbit.
Time of India
3 days ago
- Business
- Time of India
Singapore's Keppel to sell M1 stake to Simba Telecom for a net $778 million
By Rishav Chatterjee and Yantoultra Ngui SINGAPORE : Singapore's Keppel is selling its 83.9% stake in subsidiary M1 Ltd to Simba Telecom while retaining the non-telecoms operations of its unit in a deal that will give the asset manager net cash of S$1 billion ($778.15 million). Keppel said on Monday it will sell M1's telecoms operations for an enterprise value of S$1.43 billion, and retain the fast-growing information and communications technology business, which also includes data centres and subsea cables. M1 and Simba are Singapore's third- and fourth-largest mobile operators by market share, trailing Singapore Telecommunications and StarHub. "The proposed transaction offers a strategic path to sustainable growth for Singapore's telco sector," Keppel CEO Loh Chin Hua said in a statement. Keppel said the deal would benefit the industry and consumers by consolidating the market and unlocking synergies between two digitally driven operators. Backed by state investor Temasek, Keppel said the divestment aligns with its strategy to operate an asset-light model, and will sharpen its focus on digital infrastructure within its connectivity segment. Keppel, which first invested in M1 in 1994 as a founding shareholder, said Simba had submitted the strongest bid among interested parties, and its combination with M1 is expected to create further revenue opportunities. It said it expects to record an estimated accounting loss of S$222 million on the deal. Loh said the proceeds can be used for Keppel's growth opportunities and lower its debt or reward its shareholders. "This will not only improve the new Keppel's ROE (return on equity) but also support the market's further re-rating of Keppel," he added. Shares of Keppel, which are under a trading suspension due to the deal announcement, have climbed 25.4% year-to-date, outpacing the 11.9% rise in the benchmark Singapore index , LSEG data showed. Simba Telecom is wholly owned by Australia-listed Tuas . In a separate statement, Tuas said it is looking to raise at least A$416 million ($271.15 million) through a placement and share purchase plan. M1's operations, excluding the businesses that Keppel intends to retain, recorded revenues of S$806.1 million and an EBITDA of S$195.4 million in the year ended April. Keppel said it hopes to complete the proposed transaction over the next few months, subject to regulatory approval. DBS is the financial adviser to Keppel for the proposed deal, according to the announcement.
Business Times
3 days ago
- Business
- Business Times
Keppel to sell M1 telco business to rival Simba Telecom for S$1.43 billion cash amid tough market
[SINGAPORE] Keppel will divest M1's telco business to mobile network operator Simba Telecom for an enterprise value (EV) of S$1.43 billion. In an announcement on Monday (Aug 11), Keppel said payment will be in cash and it will receive close to S$1 billion for its 83.9 per cent effective stake in M1. It said Simba Telecom had put forward the strongest bid, at an 'attractive valuation', among interested parties. Its combination with M1 is expected to create more revenue pools and career opportunities, considering how they have the least overlap in resources. The parent company of Simba Telecom, Australian-listed Tuas Ltd, said in a statement on Monday it's seeking to raise A$416 million (S$348.4 million) in equity by way of a non-underwritten institutional placement and share purchase plan to fund the acquisition, in addition to existing cash. The funding will also be supported by S$1.1 billion of fully underwritten bank debt financing. The floor price for the offer will be A$5.24 per share representing a 4.9 per cent discount to Tuas' closing price on Friday. The institutional placement will be about A$366 million based on the floor price. Tuas, which has a current market value of almost A$2.6 billion, is also undertaking a share purchase plan (SPP) for eligible shareholders to raise around A$50 million. New shares under the SPP will be issued at the lower of placement price and 2 per cent discount to the five-day volume-weighted average price up to, and including, the closing date of the SPP. 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 Upon completion, Tuas expects its pro-forma debt to earnings before interest, taxes, depreciation and amortisation (Ebitda) leverage ratio to be about four times, and aims the finish the acquisition 'over the next few months', which is set to be 'highly earnings per share (EPS)-accretive for shareholders from year one'. Tuas is one of the companies in the TPG Telecom Group, and was incorporated in March 2020. The company noted it is on track to meet outlook expectations laid out in its H1 FY2025 guidance, and will announce its full-year FY2025 results on Sep 24. The sale is said to represent an implied valuation of 7.3 times EV/Ebitda. The company is expected to receive cumulative cash of over S$700 million with the proposed divestment, coming after an estimated accounting loss of S$222 million excluding transaction costs (assuming the transaction occurred on Jun 30). The actual loss on divestment to Keppel upon completion, however, will depend on the consideration, which is subject to post-completion adjustments and the carrying value of the assets relating to the proposed sale. This includes goodwill from the acquisition of M1 by Keppel in 2019, to be attributed to the assets of the divestment, at the date of completion. Keppel first invested in M1 in 1994 as one of its founding members, and continues to retain M1's information and communication technology business and certain assets excluded from the proposed transaction. Loh Chin Hua, chief executive of Keppel, said the divestment is over and above the S$14.4 billion non-core portfolio that has been identified for monetisation, with about S$1 billion cash from the sale to go to growth opportunities. 'This will not only improve the New Keppel's return on equity, but also support the market's further re-rating of Keppel,' he added. New Keppel refers to the group's transformation into a global asset manager and operator, which began in 2024, as the company moves towards aligning with more new energy infrastructure and digital connectivity solutions. This sentiment had been clear since late July 2025, given how the telco market is under 'severe competitive pressure' with four operators and around seven mobile virtual network operators, said Manjot Singh Mann, chief executive of Keppel's connectivity segment. For H1 FY2025, the group's revenue in this segment , which includes data centres and telco M1, rose 13.9 per cent to S$742.4 million. The segment's net profit, however, declined 16.9 per cent to S$57.5 million, on the back of lower overall earnings from M1, in addition to valuation gains on sponsor stakes in private funds. Mann previously highlighted the wave of SIM-only plans replacing contract plans, a trend that has diluted average revenue per user amid an 'overcrowded market'. Keppel for the same half-year period reported a 24.2 per cent year-on-year increase in net profit to S$377.7 million, translating to an EPS of S$0.208, up 23.1 per cent from S$0.169 a year prior. Shares of Keppel closed Friday 0.8 per cent or S$0.07 down at S$8.58. The company called for a trading halt on Monday morning.
Business Times
3 days ago
- Business
- Business Times
Keppel proposes M1 telco divestment to Simba Telecom for S$1.43 billion
[SINGAPORE] Keppel announced on Monday (Aug 11) its proposed divestment of M1's telco business to mobile network operator Simba Telecom for an enterprise value (EV) of S$1.43 billion. The consideration will be fully paid in cash, and Keppel will receive close to S$1 billion in cash for its 83.9 per cent effective stake in M1. Keppel said Simba Telecom had put forward the strongest bid, at an 'attractive valuation', among interested parties. Its combination with M1 is expected to create more revenue pools and career opportunities, considering how they have the least overlap in resources. The parent company of Simba Telecom, Australian-listed Tuas Limited, said in a company statement on Monday that it seeks to raise A$416 million (S$348.4 million) in equity by way of a non-underwritten institutional placement and share purchase plan to fund the acquisition, in addition to existing cash. The funding will also be supported by S$1.1 billion of fully underwritten bank debt financing. The floor price for the offer will be A$5.24 per share representing a 4.9 per cent discount to Tuas' closing price on Friday. The institutional placement will be about A$366 million based on the floor price. Tuas is also undertaking a share purchase plan (SPP) for eligible shareholders to raise around A$50 million. New shares under the SPP will be issued at the lower of placement price and 2 per cent discount to the five-day volume-weighted average price up to, and including, the closing date of the SPP. 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 Upon completion, Tuas expects its pro-forma debt to earnings before interest, taxes, depreciation and amortisation (Ebitda) leverage ratio to be about four times, and aims the finish the acquisition 'over the next few months', which is set to be 'highly earnings per share (EPS)-accretive for shareholders from year one'. Tuas is one of the companies in the TPG Telecom Group, and was incorporated in March 2020. The company noted it is on track to meet outlook expectations laid out in its H1 FY2025 guidance, and will announce its full-year FY2025 results on Sep 24. The sale is said to represent an implied valuation of 7.3 times EV/Ebitda. The company is expected to receive cumulative cash of over S$700 million with the proposed divestment, coming after an estimated accounting loss of S$222 million excluding transaction costs (assuming the transaction occurred on Jun 30). The actual loss on divestment to Keppel upon completion, however, will depend on the consideration, which is subject to post-completion adjustments and the carrying value of the assets relating to the proposed sale. This includes goodwill from the acquisition of M1 by Keppel in 2019, to be attributed to the assets of the divestment, at the date of completion. Keppel first invested in M1 in 1994 as one of its founding members, and continues to retain M1's information and communication technology business and certain assets excluded from the proposed transaction. Loh Chin Hua, chief executive of Keppel, said the divestment is over and above the S$14.4 billion non-core portfolio that has been identified for monetisation, with about S$1 billion cash from the sale to go to growth opportunities. 'This will not only improve the New Keppel's return on equity, but also support the market's further re-rating of Keppel,' he added. New Keppel refers to the group's transformation into a global asset manager and operator, which began in 2024, as the company moves towards aligning with more new energy infrastructure and digital connectivity solutions. This sentiment had been clear since late July 2025, given how the telco market is under 'severe competitive pressure' with four operators and around seven mobile virtual network operators, said Manjot Singh Mann, chief executive of Keppel's connectivity segment. For H1 FY2025, the group's revenue in this segment , which includes data centres and telco M1, rose 13.9 per cent to S$742.4 million. The same segment's net profit, however, declined 16.9 per cent to S$57.5 million, on the back of lower overall earnings from M1, in addition to valuation gains on sponsor stakes in private funds. Mann previously highlighted the wave of SIM-only plans replacing contract plans, a trend that has diluted average revenue per user amid an 'overcrowded market'. Keppel for the same half-year period reported a 24.2 per cent year-on-year increase in net profit to S$377.7 million, translating to an EPS of S$0.208, up 23.1 per cent from S$0.169 a year prior. Shares of Keppel closed Friday 0.8 per cent or S$0.07 down at S$8.58. The company called for a trading halt on Monday morning.
