Keppel to offload M1's telco business

Information and communications technology operations set to be retained.

Singapore-headquartered Keppel is selling M1's telecommunications business to Simba Telecom in an all-cash deal.

According to Keppel, which will retain M1's information and communications technology (ICT) operations, the enterprise value of its agreement with Simba stands at approximately $1.11b (S$1.43b). Keppel first invested in M1 in 1994 as a founding member, prior to M1's privatisation in 2019. 

"The proposed transaction offers a strategic path to sustainable growth for Singapore's telco sector," Keppel CEO Loh Chin Hua declared when the planned sale was announced.

"M1 and Simba are a highly synergistic combination – together, they can scale more efficiently, optimise infrastructure, and accelerate 5G and digital investments, greatly enhancing service quality whilst contributing to a more resilient, future-ready telco industry."

Explaining what the move means for his camp, Loh noted: "For Keppel, the divestment of M1's telco business is the latest step in our transformation, as we simplify our business and advance our strategy and focus as a global asset manager and operator."

Subject to regulatory approval by the Infocomm Media Development Authority in Singapore, the deal will see Keppel receive nearly S$1b for its 83.9% effective stake in M1. Notably, the latter's ICT business will not be offloaded and will continue to complement Keppel's integrated connectivity offering.

Loh said the cash proceeds can be spent on lowering the group's debt or rewarding shareholders, or on growth opportunities for the transformed Keppel moving forward.

Shareholder approval from either the Keppel or Simba side is not required for the sale.