Keppel will dispose of its 83.9% effective stake in M1’s consumer business for S$985mil cash to mobile operator Simba Telecom.
Keppel will retain M1’s information and communication technology (ICT) business that can support the growth in data centre and subsea operations.
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Key Highlights:
Asset to be disposed: 83.9% stake in M1, excluding ICT business and other assets valued at S$300mil.
Sale consideration: S$985mil cash-free debt-free basis.
Purchaser: Simba Telecom.
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Financial impact: S$222mil accounting loss from disposal. We assume 1H25 underlying net profit of M1 is S$25mil (excl. acquisition interest).
Approvals: IMDA approval but shareholder approval is not required for Keppel or Simba.
Use of proceeds: Proceeds will be used to reduce gearing, debt, and return to shareholders. Final determination at financial year end. This sale is not part of the S$14.4bn of non-core portfolio that Keppel has identified for monetisation.
Maintain BUY with a higher target price of S$10.70.
Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
