Singtel Rises on Robust Earnings as StarHub, Keppel Slide Amid Telco Consolidation

PropNex and Apac Realty Among Property Stocks Surging on the Back of Strong Results

- Sheila Chiang

Telco consolidation made headlines last week, with StarHub fully acquiring MyRepublic Broadband and Keppel selling M1's telecoms operations.

Keppel is divesting its 83.9 per cent stake in M1's telecoms business to Simba Telecom, a unit of Australia-listed company Tuas, in a $1.43 billion deal.

Shares of the global asset manager and operator fell after the Aug 11 announcement, with some observers noting that it booked an accounting loss, or loss on paper, for the sale. The stock declined 1.52 per cent from last week's close to $8.45 on Aug 15.

The estimated $222 million accounting loss for Keppel stems from goodwill and intangible assets tied to the telco business. Keppel first invested in M1 in 1994 and was later involved in its privatisation in 2019.

At a media briefing, Keppel chief executive Loh Chin Hua said that the company has been making an effort to divest non-core assets.

"Our narrative is that we are going to create an asset-light 'New Keppel'. This particular business is no longer core to us. Being able to monetise it is probably the most important point," he added.

The other telco consolidation came on Aug 12, the day after the Keppel announcement.

StarHub, which already held a 50.1 per cent stake in MyRepublic Broadband, said it acquired the remaining 49.9 per cent share in a roughly $105 million deal, in a move aimed at strengthening StarHub's strategy in the broadband market.

StarHub CEO Nikhil Eapen said: "We are in a phase of consolidation, and we are not just watching it unfold, we are shaping it."

He added: "As the market shifts, scale, quality and resilience matter more than ever. Smaller players may find it harder to sustain, especially without robust platforms."

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