Keppel to sell M1's telco business to Simba for S$1.43 billion

Singapore asset manager Keppel announced on Aug. 11 that it will sell the telecom operations of its subsidiary M1 to Simba Telecom for an enterprise value of S$1.43 billion.

The transaction is expected to be completed over the next few months, subject to regulatory approval by Singapore's Infocomm Media Development Authority (IMDA), Keppel said in a statement.

The company will be divesting its 83.9 per cent stake in M1 to Simba, a local operator wholly owned by Tuas Ltd.

The final amount is subject to post-completion adjustments, but Keppel will receive close to S$1 billion in cash proceeds.

It will retain M1's information and communications technology business, which includes data centres and subsea cables.

Simba had put forward the strongest bid among interested parties, Keppel said.

Market consolidation

The landmark transaction, Keppel said, will benefit Singapore's telecommunications sector and consumers.

It expects the combination of M1 and Simba to create further revenue and career opportunities by combining M1's digitally transformed, cloud-native network, with Simba's digital consumer model.

Although Keppel is estimated to incur an accounting loss of S$222 million, the company sees the sale as a testament of its successful digital transformation of M1 over the years.

Keppel first invested in M1 in 1994 as one of its founding members, and was involved in M1's privatisation in 2019.

It said that this divestment will enable it to focus more within its connectivity segment on digital infrastructure.

M1's operations, excluding the businesses that Keppel intends to retain, recorded revenues of S$806.1 million in the financial year ending in April 2025, Reuters reported.

Simba's parent company Tuas said it is looking to raise at least AU$416 million (S$348.4 million) through a placement and share purchase plan.

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