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Tuas Scraps Deal to Acquire Singapore's M1

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Tuas Scraps Deal to Acquire Singapore's M1

Australian telecommunication company Tuas (ASX:TUA) terminated its plan to acquire Keppel's stake in Singaporean digital network operator M1 for SG$1.43 billion, according to a Friday release.

The 2025 deal, made through Tuas' Singapore-based unit Simba Telecom, collapsed after several conditions were not met on the long-stop date of May 21, the release said.

The development came days after Singapore's Infocomm Media Development Authority (IMDA) suspended its review of the planned acquisition after finding out that Simba may be using unauthorized radio frequency bands for mobile services.

Keppel had previously said it has been working on plan B in case it retains its 83.9% ownership in M1.

"We have a 90-day plan to drive M1's efficiency, which we will activate with immediate effect. This would include reducing technology platform costs and network costs, using AI for automation, as well as product rationalization," the global asset manager said on May 18.

With Tuas exiting the acquisition race, telecom operator StarHub (SGX:CC3) is likely to become a suitor for M1, while Singtel (SGX:Z74) may face more regulatory troubles in its potential bid for M1 due to its leading 44% share in the mobile market, Bloomberg News reported, citing its analyst Chris Muckensturm.

Singtel's executive officer, Yuen Kuan Moon, said they "would definitely evaluate where the opportunities are" if they are able to be included in the consolidation, the report said.

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