4 Mar 2019
Singapore Press Holdings (SPH) and Singaporean conglomerate Keppel Corporation, which last month secured majority control of Singapore’s smallest telco M1 Limited (M1) through their joint venture vehicle Konnectivity, confirmed via a Singapore Exchange filing dated 27 February that they now own 90.15% of M1’s shares. Having crossed a key threshold – ‘Strong support for the offer by shareholders has resulted in M1 ceasing to have at least 10% of the total number of shares held by the public,’ said Keppel and SPH in the filing – the telco will now be delisted after the close of the voluntary general offer.
As previously reported by CommsUpdate, last month Konnectivity secured majority control of city-state fixed and mobile operator M1, with the announcement that Axiata Group (via wholly owned subsidiary Axiata Investments [Singapore]) had accepted a voluntary conditional general cash offer for the group’s entire 28.6% stake in M1 for MYR1.65 billion (USD404.5 million). In a press release, SPH confirmed that Konnectivity had received ‘valid acceptances that result in it and its concert parties holding 75.5% of the maximum potential issued share capital of M1’. Axiata’s decision to walk away from M1 ends a relationship that began back in 2005, since when the investment has yielded healthy dividends of 7% over the years, and comes at a time when the industry faces short-term challenges in the shape of upcoming new entrant TPG.