China Mobile among suitors to buy stake in S’pore’s M1

SINGAPORE: Top shareholders in Singapore telecoms company M1 Ltd have approached potential buyers China Mobile and global private equity firms, among others, to sell combined majority stake in the firm, said sources.

The three main shareholders of Singapore’s smallest listed telecoms player, who own a combined 61 per cent, flagged a strategic review of their investments last month, and appointed Morgan Stanley as financial adviser.

They did not give a reason behind the review of their stake in the S$1.9 billion (RM5.98 billion) company.

The sources said the three shareholders — Axiata Group, Singapore Press Holdings and Keppel Telecommunications & Transportation — had also reached out to other telecoms firms, cash-rich business groups in China and Japanese tech firms to gauge their interest.

First-round bids for M1, long seen as a target due to its small size and diverse shareholding, are expected in a few weeks, said the sources.

They added that talks between the parties were still at an early stage. They did not provide details on how China Mobile or the other prospective bidders have responded to the approach.

The sale process comes as competition heats up in Singapore, with Australia’s TPG Telecom set to launch its services next year after winning a licence to become the city-state’s fourth telecom operator.

Analysts expect M1 to be the most vulnerable to new competition. Reuters