Keppel, Tuas call off $1.4b M1-Simba deal

Alleged spectrum misuse stalled the deal's review.

Keppel Ltd. and Australia’s Tuas Limited have scrapped a proposed acquisition of M1 Limited after regulatory approval conditions were not met by the deadline.

The deal, announced in August 2025, involved Tuas subsidiary Simba Telecom acquiring M1’s telecommunications business for $1.4b in cash, subject to adjustments.

Keppel was set to receive approximately $1b for its 83.9% stake in the telco.

In separate filings, the companies said the share purchase agreement lapsed after approval from the Infocomm Media Development Authority (IMDA) was not obtained before the long-stop date of 21 May.

Earlier this week, the IMDA suspended its review of the proposed M1-Simba consolidation following investigations into the subsidiary’s alleged unauthorised use of spectrum.

The regulator said the assessment included competition, public interest, and cybersecurity considerations tied to M1’s mobile and broadband networks.

Keppel said the agreement had “terminated and ceased to have effect” after the authority’s approval condition remained unmet.

Tuas, meanwhile, said several conditions precedent had not been satisfied before the deadline.

The Australian company also disclosed that its subsidiary has been cooperating with the IMDA in investigations into possible breaches of the Telecommunications Act and conditions tied to its Facilities-Based Operator licence.

“In the meantime, Simba continues to operate its business in the Singapore telecommunications market,” it added.

Meanwhile, analysts said alternative industry restructuring options could still emerge following the collapse of the deal, as Keppel has previously indicated it remains open to divestment opportunities.

A separate Maybank report said StarHub Ltd. could remain a potential strategic candidate given its long-standing interest in industry consolidation. However, valuation expectations for M1 may moderate versus prior cycles.