FYI

SPH and Keppel Corporation acquire controlling stake in telecom firm M1

Singapore Press Holdings and Singapore-based conglomerate Keppel Corporation with  interests in infrastructure and real estate, have obtained a majority controlling stake in telecom company M1. The stake was acquired via Konnectivity, a company jointly owned by Keppel and SPH.

The acquisition of M1 is supposed to be the first step in the jourey to make M1 more competitive.

The announcement:

Konnectivity Pte. Ltd. (“Offeror”), a company jointly owned by Keppel Corporation Limited (“Keppel Corporation”) and Singapore Press Holdings Limited (“SPH”), has announced that its voluntary conditional general offer (“Offer”) for M1 Limited (“M1”) is now unconditional, as the Offeror and its concert parties have achieved shareholding above 50.0%

Axiata Group Bhd (“Axiata”), a long-term shareholder of M1, has tendered its entire 28.6% stake in acceptance of the Offer. Keppel Corporation and SPH wish to acknowledge Axiata’s strong partnership, support and valuable contributions to M1 over the years, and express gratitude for Axiata’s support of this Offer.

The Offeror and its concert parties obtaining majority control of M1 is the first step in the multi-year transformational journey that M1 will embark on to enhance its competitiveness in the telecommunications landscape.

Mr Loh Chin Hua, CEO of Keppel Corporation, said, “We are very pleased that we will, together with SPH, be in a position to steer M1 during this critical period in its journey. The increasingly challenging and competitive market conditions in the Singapore telecommunications sector requires M1 to take bold steps to transform. Keppel is one of the founding shareholders of M1 and continues to see long-term value in the company. We will work with M1’s management to develop and implement new strategic and operational plans to sharpen its competitive edge, increase its momentum in digital transformation and undertake growth initiatives.

“Moreover, M1, as a connectivity platform, complements Keppel’s mission to provide solutions for sustainable urbanisation. We will strengthen collaboration and harness synergies between M1 and the Keppel Group. With Keppel growing its retail businesses in gas, electricity and urban logistics, bringing M1 into the mix will provide opportunities for us to cross-sell and offer more innovative and compelling products and services to the market.”

Mr Ng Yat Chung, CEO of SPH, said: “With control of M1, Keppel and SPH will be able to help M1 compete more effectively in the challenging telecommunications industry. We see opportunities to leverage on M1’s mobile platform to offer on demand and ready digital content to better serve our customers. This transaction is part of SPH’s ongoing objective to enhance long term value for our shareholders.”

Offer has been extended to 4 March 2019, giving shareholders an additional 14 days to consider the Offer

As at 5.00 p.m. (Singapore time) on 15 February 2019, the Offeror, has received valid acceptances that result in the Offeror and its concert parties holding 75.5% of the maximum potential issued share capital1 of M1.

With all the conditions of the Offer having now been satisfied, the Offer has become unconditional in all respects. Accordingly, the closing date of the Offer is extended from 5.30 p.m. (Singapore time) on 18 February 2019 to 5.30 p.m. (Singapore time) on 4 March 2019.

All capitalised terms which are used in this press release but not otherwise defined herein shall have the meanings ascribed to them in the Offer Document dated 7 January 2019. This press release should be read in conjunction with the full text of the Offer Document which is available on www.sgx.com.

Source: SPH press release

ADVERTISEMENT

Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella Asia newsletter now.

 

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing