Telecom Sector Consolidation - DBS Research 2024-05-14: Scenario Analysis Of A StarHub-M1 Merger

Telecom Sector Consolidation? Scenario Analysis Of A StarHub-M1 Merger

Singapore Telecom Sector - DBS Group Research | SGinvestors.ioStarHub (SGX:CC3) KEPPEL LTD. (SGX:BN4)
  • According to an article published in The Edge, StarHub (SGX:CC3) and M1 are exploring a potential merger of their businesses. StarHub has declined to comment on this news, hence the article is highly speculative at this stage. However, we think Keppel (SGX:BN4) might consider selling M1.
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Assuming that StarHub can acquire M1 at 7-8x EV/EBITDA using 100% debt financing.

StarHub’s earnings could benefit by 16%-37% over FY25F- 27F due to synergies with M1 on our estimates.

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  • With average revenue per user (ARPU) declining by ~32% (post-paid mobile) since 2017 for StarHub, a merger could support stabilisation and operational improvements.

We assume that M1 can be acquired at 7-8x EV/EBITDA.

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Sachin MITTAL DBS Group Research | Pei Hwa HO DBS Research | 2024-05-14

More views on outlook of telecom sector:
Analyst Reports on Singapore Telecom Sector


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