Singtel, StarHub shares fall on news of M1 sale to rival

Shares of Singtel and StarHub fell on Aug 11, following the announcement by Keppel that it will sell M1, Singapore's third-largest telco business, to rival Simba Telecom.

- Benjamin Lim

Singtel slid 1.3 per cent, or five cents, to $3.93 with 18.2 million shares traded. StarHub tumbled 4.9 per cent, or six cents, to $1.16 as 9.1 million shares changed hands.

Shares of Keppel were halted from trading before the market opened on Aug 11. They had last closed down 0.8 per cent at $8.58 on Aug 8.

Tuas Limited, the Australia-listed parent company of Simba, also halted trading on the Australian stock exchange on Aug 11.

The drop in StarHub and Singtel share prices can be attributed to the unexpected acquirer of M1, said CGS International Securities Malaysia.

"While the M1 stake sale was widely expected by the market, the consensus view was that it would be partnered with StarHub. The emergence of Simba as the acquirer was a surprise and added uncertainty to future sector dynamics," the research house said.