Singapore-based conglomerate Keppel Corporation and media company Singapore Press Holdings (SPH) have made a takeover bid for the remaining shares in mobile operator M1.
Keppel Corporation, which owns 19.23% of M1, and SPH, which owns 13.38% of the operator, have used their joint venture Konnectivity to make a voluntary conditional general offer for all the remaining issued shares of the operator.
The S$2.06 ($1.52) per share offer will become unconditional once Konnectivity acquires a majority stake in M1.
Shareholders in M1 will have until February 4 to accept the offer. The deal has reportedly secured the required regulatory approvals.
OCBC Investment Research recently issued a research note advising M1 shareholders to accept the offer, stating that the price is fair considering the current financial challenges M1 is facing due to the competitive market environment triggered by the entry into the market of Australia-based TPG Telecom.
According to reports, Konnectivity has approached M1's largest shareholder, Malaysia-based Axiata Group, with a takeover offer. But the deal will not be contingent on Axiata Group's acceptance, and OCBC has speculated that Axiata could make a counter-offer for the operator.