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Singapore Telecom Regulator Suspends Review of Keppel's Sale of M1 to Simba Telecom

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Singapore Telecom Regulator Suspends Review of Keppel's Sale of M1 to Simba Telecom

Singapore's Infocomm Media Development Authority (IMDA) suspended its review of Keppel's (SGX:BN4) proposed SG$1.43 billion sale of telecommunications provider M1 to Simba Telecom, a unit of Tuas (ASX:TUA).

The telecom regulator said it halted the assessment until further notice while it investigates the matter, according to a Monday press release.

IMDA said it discovered during the review process that Simba may have used unassigned radio frequency bands to provide mobile services, potentially breaching Singapore's telecommunications law and conditions tied to the company's facilities-based operations licence.

The regulator said it is investigating the matter and will take enforcement action if the breach is established.

IMDA added that the findings of the investigation could materially affect its assessment of the proposed consolidation and any potential impact on competition, public interest, and cybersecurity.

Last August, Keppel said it would sell its 83.9% stake in M1 to Simba Telecom while retaining M1's non-telecom operations, a transaction expected to unlock nearly SG$1 billion in cash proceeds.

The company had described the proposed combination as a strategic move to create a "nimble and competitive digital-first telco" better positioned to accelerate investments in the telecom sector.

Responding to IMDA's decision, Keppel said it had prepared a "Plan B" should it retain majority ownership of M1 and will begin executing a 90-day efficiency plan aimed at improving the telecom operator's run-rate EBITDA.

"On Keppel's part, our target to monetise SG$2-SG$3 billion of non-core assets in 2026 remains unchanged," the company said.

"The proposed divestment of our stake in M1's telecommunications business will be removed from Keppel's announced monetisation for 2025," it added.

Keppel added that it remains open to future divestment opportunities and continues to believe Singapore's telecommunications industry would benefit from consolidation.

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