In response to a question from Foo of Macquarie at M1 parent company Keppel’s 3QFY2024 briefing on October 24, M1 CEO Manjot Singh Mann mentioned that a $188 million spectrum payment originally due this month can be deferred until June next year.
According to Foo from Macquarie, if Keppel intends to sell M1, it would likely need to complete the sale before the new payment deadline.
Singtel is not expected to be a buyer, as this would likely raise anti-competitive concerns. StarHub is seen as a more suitable buyer than SIMBA, as it already shares a spectrum joint venture with M1 and has overlapping operations. However, StarHub would need to return some of the acquired bandwidth for reallocation if it moves forward. SIMBA, on the other hand, would be eager to secure M1’s bandwidth for expansion.
Keppel has invested around $2.3 billion in M1 and additional acquisitions, indicating it may not sell at a loss. Foo suggests that Keppel might retain M1’s enterprise business while selling the consumer mobile business, which StarHub and SIMBA are keen to acquire for the increased market share.
Source Edge Invest, theedgesingapore.com