SINGAPORE (Oct 1): Shares in local telcos StarHub, M1 and Singapore Telecommunications (Singtel) have seen significant investor interest recently, although this time it is not just for their dividend payouts.

All three counters were heavily traded on Sept 21, and before markets reopened after the weekend on Sept 24, M1 announced a trading halt. On Sept 27, Keppel Corp and Singapore Press Holdings announced a pre-conditional cash offer for M1 at $2.06 per share. Keppel Corp and SPH with their concert parties, which includes Keppel Telecommunications and Transportation, own 33.27% of M1. (Keppel Corp holds its M1 stake through KT&T.) KT&T holds 19.33% of M1 and SPH owns 13.45%. Both Keppel Corp and SPH will form a company, Konnectivity, to be the offeror. SPH will roll over its stake in M1 into Konnectivity in exchange for a 20% share in the latter. KT&T has not undertaken to tender its M1 shares. 

A pre-condition to the offer is that Konnectivity receives the relevant approvals from the Info-Communications Media Development Authority (IMDA). Konnectivity’s intention is to gain majority control of M1. In the event the free float requirement is not satisfied, Konnectivity does not intend to preserve the listing status of the company and has no intention of undertaking or supporting any action to satisfy the free float requirement.

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