StarHub could acquire M1 by Jun. 2025: The Edge citing analyst report

Keppel might sell off its local telecommunications subsidiary company M1 by June 2025, The Edge reported on Nov. 7, 2024.

While nothing appears to be set in stone yet, StarHub looks to be the most likely acquirer.

Among the current four mobile operators in Singapore, namely Simba, Singtel, M1 and StarHub, Singtel is the leading operator with a market share of more than half, The Edge added.

Spectrum usage payment deadline

If M1 were to be sold off, it would likely be before its spectrum usage payment deadline, a Nov. 5 report by Foo Zhiwei of Macquarie Securities cited by The Edge said.

Moreover, M1's spectrum usage payment of S$188 million, initially due this month, could be postponed to June 2025, M1's chief executive officer (CEO) Manjot Singh Mann said during Keppel's third quarter financial year 2024 briefing on Oct. 24.

"We would be looking at June of next year to pay for the spectrum and use the spectrum," Manjot said.

This would mean the sale is likely to take place before June 2025.

A possible sale of S$1.7 billion

If the deal goes through, it could potentially fetch upwards of S$1.7 billion, Foo estimated.

Foo added that Keppel would likely only sell off M1's consumer mobile business, which StarHub would be looking to acquire for the additional market share, and not its enterprise business.

A DBS Insights report back on May 14, 2024, outlined several reasons behind Keppel's possible sale of M1, including a strategic shift to the enterprise market with revenues tripling since privatisation.

M1, which is currently privately-held, was delisted from the Singapore Exchange in April 2019.

StarHub shares could go up

StarHub shares currently trade at S$1.20, as of Nov. 18, 2024.

Foo upgraded StarHub's shares to possibly "outperform" and hit a target price of S$1.30.

According to Foo, the possible acquisition of M1 would likely lift StarHub's shares to between S$1.39 and S$1.40, depending on the transacted price.

M1

M1 was first founded as a consortium known as MobileOne in 1994.

It was the first telecommunications company in Singapore, apart from Singtel, to obtain a cellular licence in May 1995.

M1's entrance into the telecommunications market was part of a period of market liberalisation across the Asia-Pacific region.

Top photo from Capitaland.