M1’s biggest shareholders evaluating stake sales worth over S$1.2b

SINGAPORE - M1’s three biggest shareholders, who together own about 60 per cent of the Singapore telco, are evaluating selling their stakes in the first sign of merger and acquisitions activity in the local telecoms sector that is set to see increased competition.

Singapore Press Holdings, Keppel Telecommunications & Transportation and Malaysia’s Axiata Group Berhad are undertaking a strategic review of their respective shareholdings in M1, the companies said in separate statements filed with the Singapore Exchange on Friday (March 17). M1, which has a total market value of about S$2.1 billion, declined to comment, referring media queries to the three shareholders.

The three companies, which did not give a reason for the move, added that there was no certainty that the review would lead to a transaction. The investors’ stakes in Singapore’s smallest telco are worth more than S$1.2 billion.

Singapore currently has three telcos - Singapore Telecommunications, StarHub and M1, in order of size. Australia’s TPG Telecom last year won the bid to enter the city-state’s market and said it planned to start offering services to consumers in early 2018 and establish a mobile network with nationwide coverage by September the same year.

M1’s shareholders have jointly appointed Morgan Stanley Asia (Singapore) as their financial adviser to assist with the strategic review. Malaysian telecom firm Axiata Group is the biggest shareholder in M1 with a stake of just over 28 per cent, Keppel Telecommunications holds around 19 per cent and SPH has about 13 per cent, according to stock exchange data.

M1 shares rose 7.9 per cent to S$2.19 before trading was halted ahead of the announcements. Its shares had lost nearly half their value from a 2015 peak before Friday’s jump. - AGENCIES