Keppel to Sell M1's Telco Business to Rival Simba for $1.43 Billion

It says consumers to benefit from deal; no disruption to M1's offerings, services

- Tay Hong Yi

Singapore-based Keppel is selling the telecoms business of its subsidiary M1 to rival Simba Telecom for $1.43 billion, in what is the first telco consolidation in Singapore's history.

The sale has been widely anticipated by market watchers, as telcos here are facing downward pressure on revenue from each subscriber due to the rise of mobile virtual network operators offering cheap plans.

The $1.43 billion deal, announced on Aug 11, factors in cash and debts and is subject to post-completion adjustments.

Speculation had centered on StarHub instead of Simba as the likely buyer until the announcement.

A Keppel spokesperson said that business remains as usual at M1, with no disruption to its offerings and services, while the deal is pending approval by the Infocomm Media Development Authority.

In an analyst briefing on Aug 11, Keppel chief executive Loh Chin Hua said it is too early to tell if retrenchments are needed, reiterating that M1 is already a streamlined, efficient entity with the least overlap with Simba.

M1 and Simba did not reveal how many employees they hire at present.

"The proposed landmark transaction is expected to benefit Singapore's telecommunications sector and consumers through market consolidation and harnessing synergies between two of the nation's agile and digitally driven telcos with strong track records for innovation," Keppel said in a statement.

"It brings together M1's digitally transformed, cloud-native network with its ability to deliver hyper-personalized services through an advanced tech stack, and Simba's innovative digital consumer model."

Simba has more than one million mobile subscribers as at December 2024.