Keppel T&T to benefit the most from M1 stake review

Its investment in M1 accounts for 38% of its market value.

Following the announcement that M1’s key shareholders – Keppel T&T, Axiata Group Bhd (Axiata), and SPH – are currently conducting a strategic review of their respective shareholdings, DBS Group Research said Keppel T&T has more to gain.

"Given that M1 is not a large proportion of the market caps of SPH and Axiata, the disposal of their stakes in M1 may not have a major impact on their valuations. In contrast, Keppel T&T will see the biggest impact as its investment in M1 accounts for 38% of its market value," explained DBS.

It estimates that every 10% upside to M1’s share price could lift Keppel T&T’s value by 3.8%. Further, DBS believes a sale of Keppel T&T’s stake in M1 will also lead to renewed expectations of privatisation by parent Keppel Corp.

Here's more from DBS:

Based on data of previous buyouts and privatisations for SGX-listed companies, we believe the takeover premium could range anywhere between 10-35% over last close, which implies the transaction price, if any, could range between S$2.23 to S$2.74 per share.

Given M1’s current market cap of around S$2b, any third-party acquirer would thus require around S$1.3-1.6b for the 61% stake held by the three existing major shareholders.

Of course, such a move will also lead to a General Offer (GO) for minority shareholders, but if the acquirer intends to keep M1 listed, it may not be incentivised to offer a premium to minority shareholders during a GO.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia