SINGAPORE (Sept 28): If Axiata rejects the pre-conditional voluntary general offer (VGO) by Keppel and SPH to acquire M1 at $2.06 per share, the deal still goes through as it takes another effective 18% from the market to gain 51%, say analysts.
Assuming Axiata, which has a 28% stake in M1, is the only shareholder to reject the offer, the the deal will still go through. It will result in Keppel and SPH jointly owning 72% of M1 via the offering company, Konnectivity. In this case, the privatisation of Keppel T&T at $1.91 is highly likely to go through.
To recap, two separate transactions were announced yesterday. In the first transaction, together with SPH, Keppel announced a VGO for M1 at $2.06. In the second transaction, Keppel is taking Keppel Telecommunications & Transportation (KT&T) private at $1.91.