Singapore investment and asset management firm Keppel has announced plans to divest the main telecommunications arm of its subsidiary M1 to Simba Telecom, in a transaction valued at S$1.43 billion. The agreement, unveiled on 11 August, will see Simba acquire an 83.9 per cent stake in M1, subject to regulatory clearance from the Infocomm Media Development Authority (IMDA).
While the final purchase price will be adjusted post-completion, Keppel is expected to pocket close to S$1 billion in cash proceeds. The sale excludes M1’s information and communications technology (ICT) arm, which Keppel will retain, encompassing its data centres, subsea cables, and other digital infrastructure assets.
Simba, a home-grown operator under the ownership of Tuas Ltd., emerged as the top bidder in what was reportedly a competitive process involving multiple interested parties.
Boosting Competition in Singapore’s Telecommunications Market
Keppel said the move would strengthen the local telecommunications market by combining M1’s cloud-native network with Simba’s consumer-focused digital model. Industry observers believe the consolidation could enhance service offerings, improve network reliability, and drive innovation in connectivity solutions for both corporate and retail customers.
Although Keppel is set to record an accounting loss of around S$222 million from the divestment, the company views the deal as a strategic realignment. Having invested in M1 since its founding in 1994 and spearheading its privatisation in 2019, Keppel has shifted its focus towards infrastructure-driven growth, particularly in the rapidly expanding digital connectivity sector.
For the financial year ending April 2025, M1’s core operations—excluding ICT—generated S$806.1 million in revenue, according to Reuters.
Simba’s Expansion Plans
Tuas Ltd., Simba’s parent company, has announced plans to raise at least AU$416 million (approximately S$348.4 million) through a share placement and purchase scheme. These funds are expected to support the integration of M1’s assets and accelerate network development.
Analysts note that the acquisition could reshape Singapore’s mobile and broadband landscape, creating a stronger competitor to established players while also improving value for consumers. With both companies bringing complementary strengths to the table, the deal marks a significant step in the ongoing transformation of Singapore’s high-speed connectivity ecosystem.