The Tamesis
David Teoh, Chairman of Tuas Limited, an Australian listed company.
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Singapore-listed Keppel Ltd. to sell mobile operator M1 to Australian billionaire David Zhang Government regulators this week halted their review of the self-made tycoon’s deal, which lapsed on Thursday. Simba Telecom Found in violation of regulations.
Singapore’s Infocomm Media Development Authority (IMDA) said it had suspended its review of the acquisition after learning that Simba may be using unauthorized radio frequency bands, according to a stock exchange Archive Monday provided by Tuas Ltd. That would jeopardize the S$1.4 billion ($1.1 billion) deal, first announced by Teoh’s Australia-listed Tuas Group in August.
“Simba is cooperating fully with IMDA,” the company said in a statement. “The Tuas board will also review the matter regarding the alleged unauthorized use of [radio frequency] spectrum. “Tuas shares plummeted by more than 60% in Sydney trading on Monday and rose by about 17% today.
M1 parent Keppel said in a separate statement on Monday that the sale and purchase agreement between M1 and Simba will expire when it reaches its deadline on May 21. Keppel also said it would begin restructuring M1, focusing on right-sizing the business and cutting costs.
“Even as we make efficiency improvements at M1, we believe the Singapore telecoms industry is in dire need of and will benefit from consolidation. Keppel remains open to divestment opportunities,” Keppel CEO Loh Chun Hua said in a statement.
In August last year, Keppel agreed to sell an 83.9% stake in M1, Singapore’s third-largest mobile operator, to Simba Telecom for nearly S$1 billion in cash. Under the proposed deal, Keppel will retain M1’s information and communications technology business to complement the group’s connectivity business, which includes data centers and submarine cables.
With a real-time net worth of $2 billion, Teoh is one of Australia’s richest people. Australian citizen of Malaysian descent, founder and former executive chairman of TPG Telecom. Tuas was spun off as an independent listed company following its parent company TPG Telecom’s merger with Vodafone Australia in March 2020.
