Keppel Corp and SPH Launch a Sweet $2.06 Per‑Share Offer for M1 Shares
On Friday, 28 December, the duo of Keppel Corporation and Singapore Press Holdings (SPH) rolled out a “firm intention” to buy the rest of M1’s shares they don’t already own—at a tasty $2.06 each.
Who’s in the Mix?
- Konnectivity – The joint venture (majority‑owned by Keppel) will serve as the purchase vehicle.
- Keppel’s Holding – 19.3 % of M1 via its telecommunications arm.
- SPH’s Holding – 13.45 % stake in the telco.
The Offer in Numbers
- Price: $2.06 per share.
- Premium:
- 36 % above M1’s lowest closing price ($1.52) over the last 52 weeks.
- 25 % over analysts’ average target of $1.644.
What’s the Plan?
Keppel sees this move as a springboard for a deeper digital transformation of M1’s platform, while SPH backs it for the “long‑term value creation” it could unlock. The two parties are aiming to secure a majority stake (>50 %) in M1 by the end of the offer period.
Competitive Landscape
With a fourth carrier (TPG Telecom) on the horizon and a surge of mobile virtual network operators, the market is heating up. The recommendation? Hold off on the status quo, or risk a slower decline in shareholder value.
Market Reactions
- Keppel shares dipped 5 Singapore cents, closing at $5.90 (down 0.855 %).
- SPH shares stayed flat at $2.35.
Bottom Line
Keppel and SPH are stepping up to sweeten the deal and meet M1’s competitive challenges head‑on. Whether this will spur the telco into a new era of digital growth remains to be seen—but it certainly puts a big, crunchy price tag on what could be the next big flavour in Singapore’s telecom menu.
