Axiata decides to keep M1 stake

PETALING JAYA: Axiata Group Bhd which holds a 28.54% stake in Singaporean telco M1, yesterday said its shareholding in M1 remains after proposals for its stake sale did not meet the minimum criteria determined.

On March 17, the group announced through a filing, it was exploring a stake sale option along with Keppel Telecommunications & Transportation Ltd and Singapore Press Holdings Ltd (SPH) “which may or may not result in a transaction.”

Keppel owns a 19.23% stake, while SPH a 13.38% interest in M1.

In a filing with Bursa Malaysia, Axiata said the company along with the two other substantial shareholders in M1, namely Keppel and SPH, arrived at the decision after having “taken into consideration the proposals from interested parties.”

The responses from interested parties, according to Axiata’s board of directors did not meet the minimum criteria and parameters determined by the shareholders which hold a 61.15% stake collectively in M1.

“For the avoidance of doubt, no arrangement or agreement with any third party has been reached in relation to each majority shareholders’ respective shareholdings in M1 Ltd,” it added.

Morgan Stanley Asia (Singapore) Pte was appointed as the financial adviser to assist with the strategic review.

Axiata’s share price rose 0.22% to close at RM4.65 yesterday with some 1.48 million shares changing hands.