Singapore Press Holdings and Keppel Corp takes majority control of telco M1
Singapore Press Holdings (SPH) has gained majority control of telco M1 through its joint venture with Keppel Corporation.
SPH announced its voluntary conditional general offer M1 is now unconditional. Photo: Bloomberg.
The media conglomerate had confirmed in September 2018 that it was looking at taking over the smallest telco, valued at $1.9 billion, through Konnectivity Pte Ltd, a joint venture company it set up with Keppel.
On Friday (February 15), SPH announced its voluntary conditional general offer M1 is now unconditional, as the offeror and its concert parties have achieved shareholding above 50%.
The offer went through after Axiata Group Bhd, a long-term shareholder of M1, gave its blessing by tendering its entire 28.6% stake. The offer has been extended to March 4, giving shareholders an additional 14 days to consider the offer.
By taking control of M1, SPH and Keppel are hoping to help M1 enhance its competitiveness in its digital transformation journey, as the telco faces intense competition from mobile virtual network operators.
“With control of M1, Keppel and SPH will be able to help M1 compete more effectively in the challenging telecommunications industry,” said Ng Yat Chung, the chief executive officer of SPH.
“We see opportunities to leverage on M1’s mobile platform to offer on demand and ready digital content to better serve our customers. This transaction is part of SPH’s ongoing objective to enhance long term value for our shareholders.”
The Drum recently spoke to SPH about its diversification plans, as well as how it is turning the ship around with industry partnerships, talent and experiments, like targeted distribution and on-demand newspaper printing after its recent struggles.