Singapore telecom regulator suspends review of M1, Simba merger (updated)

Keppel

18/05/2026 02:02

Tuas shares skidded 60% as spectrum allegations threaten deal

Keppel to let May 21 deal deadline lapse

M1 sale removal dims prospects for special dividend

Recasts and adds comments from Keppel's CEO and analyst

By Jun Yuan   Yong

SINGAPORE, May 18 (Reuters) - Singapore's regulator suspended on Monday its review of a merger between Simba Telecom and M1, casting doubt on Keppel's KPLM.SI planned sale valuing M1 at about S$1.43 billion  ($1.12 billion) and sending shares in Simba's Australian owner Tuas TUA.AX sharply down.

The Infocomm Media Development Authority said in a statement that during a review it found that Simba could have been using radio frequency bands that it had not been assigned to provide mobile services.

The regulator said the merger could not proceed until its investigation into the radio frequency band use was concluded.

Simba said in a bourse filing that it was fully cooperating with the regulator and "reviewing the circumstances concerning the alleged unauthorised use of spectrum".

Shares of Australia's Tuas TUA.AX, which owns Simba, fell 60% to A$2.46 as at 0045 GMT.

Last August, Keppel said it would sell its 83.9% stake in M1 to Simba Telecom while retaining the non-telecoms operations of its unit in a deal that had an enterprise value of S$1.43 billion to give the asset manager net cash of S$1 billion.
Keppel's Chief Executive Loh Chin Hua told a press briefing on Monday that it would allow the deal to lapse past the May 21 deadline.

Loh said there was nothing to stop merger discussions with other parties after the agreement with Simba lapses, noting there had been "serious discussions" with more than one party involved before the Simba-M1 deal was signed.

   If the sale of M1 to Simba had gone through, a S$0.07 to S$0.11 per share special dividend may have been distributed, Loh said.

For the fiscal year 2025, the company declared total dividends of S$0.36 per share and one unit of Keppel Reit for every nine units of Keppel shares owned.

The company said in a bourse filing that it had a plan in case it retained majority ownership of M1 and would put in place a 90-day plan to improve the telecom firm's efficiency.

"Even as we undertake the efficiency drive at M1, we believe that the telecommunication industry in Singapore is in need of and will benefit from consolidation and Keppel remains open to opportunities for divestment," the company said.

UOB Kay Hian analyst Adrian Loh said if the deal fell through it would not reduce M1's valuation and other potential suitors would have their own valuation metrics to consider.

He noted that StarHub had long been rumoured as a possible merger partner.
StarHub did not immediately respond to a request for comment.

     ($1 = 1.2808 Singapore dollars)

 (Reporting by Jun Yuan Yong; Editing by Tom Hogue, John Mair and Ed Davies)

 ((junyuan.yong@thomsonreuters.com))