Australian telecommunication company Tuas has terminated its plan to acquire asset manager Keppel’s stake in Singaporean digital network operator M1 for SGUSD 1.43 billion. The 2025 deal, which was made through Tuas’ Singapore-based unit Simba Telecom, failed after several regulatory requirements were not met.
The deal hit the headlines after Singapore’s Infocomm Media Development Authority (IMDA) suspended its review of the planned acquisition, as it found out about the possibility of Simba using unauthorised radio frequency bands for mobile services.
“The termination of the deal is a setback to say the least given that it removes a major growth catalyst for the company (Tuas) in the Singapore telecom market,” said Tim Waterer, chief market analyst at KCM Trade, while interacting with Reuters.
“The sharp initial sell-off shows how much value the market had priced into the deal, while the partial recovery suggests some investors are betting the company (Tuas) can still find alternative growth paths,” Waterer added further.
Stating that it has been working on plan B in case it retains its 83.9% ownership in M1, Keppel remarked, “We have a 90-day plan to drive M1’s efficiency, which we will activate with immediate effect. This would include reducing technology platform costs and network costs and using AI for automation, as well as product rationalisation.”
Under the original deal, Keppel, after selling its 83.9% interest in M1 to Simba, would have retained the non-telecoms operations for an enterprise value of SUSD 1.43 billion, which would have given the asset manager net cash of SUSD 1 billion. Had the stake sale gone through, a SUSD 0.07 to SUSD 0.11 per-share special dividend would have been distributed.
With Tuas exiting the acquisition race, telecom operator StarHub has now entered the picture, with reports suggesting the venture likely becoming a suitor for M1, while Singtel, another Singaporean telecommunications conglomerate, may face more regulatory troubles in its potential bid for M1 due to its leading 44% share in the mobile market.
Singtel’s executive officer, Yuen Kuan Moon, said they “would definitely evaluate where the opportunities are” if they are able to be included in the consolidation.