M1 Limited (M1)

Privatisation of Keppel T&T at $1.91 highly likely to go through

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.

StarHub gets a wakeup call after M1 offer

SINGAPORE (Sept 27): StarHub shares have gained 17% over the past four weeks, from $1.62 to $1.90.

Following morning’s announcement that Keppel and SPH have made a buyout offer for M1, StarHub shares are up 11 cents or 6.2% to close at $1.88.

Since the start of the year, StarHub’s shares have declined 33%, reflecting an extremely competitive environment for telcos in the local market.

In fact, shares of the whole telco sector have been under intense pressure ahead of the entry of Singapore’s fourth telco, TPG.

SPH and Keppel in $2.06/share offer to privatise M1; Keppel seeking to privatise Keppel T&T with $1.91/share offer

SINGAPORE (Sept 27): Keppel Corporation and Singapore Press Holdings, through a jointly held offeror Konnectivity, is making a pre-conditional voluntary general offer for M1.

Keppel and SPH say the offer to gain majority control will “help drive business changes in M1 and enable M1 to compete more effectively in the telecommunications industry.”

The offer price for each M1 share is $2.06 each, or 26% higher than its last traded price of $1.63 before trading was halted for the announcement.

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