Simba Telecom Acquires M1 Limited for SGD 1.4 Billion

Simba Telecom Pte Ltd has agreed to acquire an 83.90% stake in M1 Limited from Keppel Ltd. for SGD 1.4 billion. The acquisition will be funded by existing cash and an equity raising of at least SGD 348 million, as well as SGD 1.1 billion in underwritten bank debt financing. The transaction is subject to regulatory approval and is expected to be completed within a few months, with the acquisition expected to be highly EPS accretive for Tuas shareholders from year one.

Simba Telecom Pte Ltd has agreed to acquire an 83.90% stake in M1 Limited from Keppel Ltd. for SGD 1.4 billion. The acquisition will be funded by existing cash and an equity raising of at least SGD 348 million, as well as SGD 1.1 billion in underwritten bank debt financing. The transaction is subject to regulatory approval and is expected to be completed within a few months, with the acquisition expected to be highly EPS accretive for Tuas shareholders from year one [2].

Keppel's decision to divest its stake in M1 Limited is part of a broader $14.4 billion asset monetization program since 2020. By shedding non-core real estate and logistics assets, the conglomerate has improved its Return on Equity (ROE) to 15.4% in 1H 2025, up from 13.2% in 1H 2024 [1]. The M1 divestiture aligns with Keppel's Vision 2030 to transition into a global asset manager focused on sustainability and digital infrastructure. This shift is not merely about liquidity—it's about reallocating capital to sectors with recurring revenue streams, such as infrastructure and digital technologies.

Simba Telecom, formerly known as TPG Singapore, has leveraged a low-cost, high-value model to capture over 10% of Singapore's mobile market. Its USD7 for 50GB plan has driven subscriber growth from 487,000 in FY2022 to 1,053,000 in FY2024. This growth is not just volume-driven; Simba's win share against StarHub hit 2.4 customers gained for every one lost in 2024, a testament to its pricing power and customer retention [1]. Simba's capital efficiency is equally compelling. Unlike traditional operators, it avoids heavy upfront 5G infrastructure costs by leveraging shared networks and third-party towers, allowing it to scale rapidly without straining cash flow.

The acquisition of M1 by Simba is expected to create more revenue pools and career opportunities. The combination of the two companies is expected to be highly earnings per share (EPS)-accretive for shareholders from year one, with the transaction expected to be completed over the next few months [2]. The acquisition is subject to regulatory approval and is expected to be completed within a few months.

For investors, the long-term value of Singapore's telecom sector hinges on two pillars: infrastructure and capital efficiency. Keppel's pivot to asset management positions it to benefit from infrastructure funds and pension-backed investments, which are assigning high valuations to mobile towers and data centers. Similarly, Simba's lean model suggests that telecom assets with scalable, low-Capex structures will outperform in a saturated market [1].

References:
[1] https://www.ainvest.com/news/strategic-asset-reallocation-singapore-telecom-sector-keppel-m1-divestiture-rise-simba-telecom-2508/
[2] https://www.businesstimes.com.sg/companies-markets/keppel-sell-m1-telco-business-rival-simba-telecom-s1-43-billion-cash-amid-tough-market