SIMBA Telecom (formerly TPG) is set to acquire M1 in a deal valued at $1.43 billion. Keppel, which co-founded M1 in 1994 and has fully owned the telco company since 2019, has agreed to sell an 83.9% stake to SIMBA, a subsidiary of the ASX-listed Tuas Ltd, at a loss of $222 million. Keppel will retain ownership of M1's informational and communications technology (ICT) business, which comprises data centres and undersea cabling.
“M1 and SIMBA are a highly synergistic combination—together, they can scale more efficiently, optimise infrastructure and accelerate 5G and digital investments,” Keppel CEO Loh Chin Hua said.
The move comes after Tuas reported its first-ever net profit of $3 million in the second half of 2024, and has prompted speculation of a merger between the two telco operators, which would return the market to three major players.
In the hours since the announcement, Singtel shares dropped 1.3% with StarHub dipping by 4.9% at the midday trading break.
The deal remains subject to approval by the Infocomm Media Development Authority (IMDA).
