Australian tycoon David Teoh's Simba Telecom to purchase Singapore's M1 telecommunications company, with an estimated deal value of 1.1 billion dollars.
The telecommunications sector in Singapore is undergoing a significant transformation with the acquisition of M1 Limited by Simba Telecom, a subsidiary of Australia-listed Tuas Ltd. Keppel, the current owner of M1, is selling an 83.9% stake in the company for approximately SGD 1.4 billion.
Details of the Acquisition
The acquisition values M1 at an enterprise value of about SGD 1.43 billion. The funding for the deal includes existing cash, an equity raise of at least SGD 348 million, and SGD 1.1 billion in underwritten bank debt financing. The deal is subject to regulatory approval by Singapore's Infocomm Media Development Authority and is expected to close within a few months.
Impact on Keppel
This sale is part of Keppel’s broader SGD 14.4 billion asset monetization program since 2020, aimed at divesting non-core real estate and logistics assets to improve capital efficiency. The transaction aligns with Keppel's Vision 2030, focusing on transitioning into a global asset manager centered on sustainability and digital infrastructure sectors. The deal unlocks close to SGD 1.0 billion in cash for Keppel, providing liquidity to fund its strategic transition.
Impact on the Telecommunications Industry in Singapore
The acquisition consolidates Singapore’s third- and fourth-largest mobile operators, creating a stronger challenger to market leaders Singtel and StarHub. The combined Simba-M1 entity will have over 3.2 million mobile customers, becoming the second-largest mobile service provider in Singapore after Singtel. This consolidation is expected to rationalize competition in the market, which had become aggressive since Simba’s entry in 2020 triggered price wars and partnerships with MVNOs by incumbents.
Summary
The acquisition of M1 by Simba Telecom marks a significant step in Singapore’s telco sector consolidation, strengthening Simba’s market position and enabling Keppel to focus on its core asset management and digital infrastructure strategy. The deal is expected to close within a few months, subject to regulatory approvals.
| Aspect | Details | |--------------------------|---------------------------------------------------------------| | Buyer | Simba Telecom (subsidiary of Tuas Ltd) | | Seller | Keppel Ltd (selling 83.9% stake in M1) | | Acquisition value | SGD 1.4 billion (Enterprise Value ~ SGD 1.43 billion) | | Financing | Cash, SGD 348m equity raise, SGD 1.1b bank debt financing | | Regulatory approval | Required by Singapore's Infocomm Media Development Authority | | Impact on Keppel | Unlocks ~S$1 billion cash, aligns with Vision 2030, improved ROE | | Market impact | Combines 3rd & 4th largest telcos, 2nd largest mobile operator| | Customer base post-merger| Over 3.2 million mobile subscribers | | Effect on competition | Rationalizes market competition, accelerates 5G, enhances service quality |
Sources: [1], [2], [3], [4], [5]
Note: The article does not include the fact that David Teoh, the founder and former executive chairman of TPG Telecom, is the current billionaire owner of Tuas Ltd. This information is not essential for understanding the article's content.
With the acquisition of M1 Limited by Simba Telecom, a subsidiary of Australia-listed Tuas Ltd., the funding for the deal will come from a combination of existing cash, an equity raise of at least SGD 348 million, and SGD 1.1 billion in underwritten bank debt financing.
The sale of M1 by Keppel, part of Keppel’s broader asset monetization program, is expected to unlock close to SGD 1.0 billion in cash for the company, providing liquidity to fund its strategic transition in line with its Vision 2030, focusing on transitioning into a global asset manager centered on sustainability and digital infrastructure sectors.
