Temasek, Axiata potential buyers of Keppel&rsquo s 19% M1 stake: report

Major shareholders will take advantage of the divestment.

If Keppel Corporation decides to sell off its 19.08% stake in mobile operator M1, then the telco&rsquo s other major shareholders will likely be keen to snap up the divested shares.

A report by BMI Research said that Temasek and Malaysia-based telco Axiata Group will be the most obvious buyers of Keppel&rsquo s stake.

This is because acquiring Keppel&rsquo s stake will allow Axiata to own a controlling stake in M1, which in turn will give it better control over the telco' s business direction and assets. Axiata currently holds a 28.32% stake in M1 and lists it as a mobile associate.

Meanwhile, Keppel&rsquo s divestment will mean that the Singapore government, which holds stakes in all three operators, will be losing a major stake in the country' s smallest operator. This could spur Temasek to decide to re-invest in the company through a different arm.

&ldquo Local conglomerate Keppel Corporation is reportedly considering divesting its 19.08% stake in operator M1 as part of the company' s move to sell off noncore assets as the company' s share price takes a beating from its poorly-performing core business. We believe these two shareholders could consider increasing their stakes in the operator if Keppel does decide to sell off its shares. : In the event that Keppel divests its 19.08% stake in M1, the operator' s largest shareholder, Axiata, would be keen to buy the stake to boost its share of profits. The Singapore government could also reclaim its interest in the smallest operator through a different investment unit,&rdquo BMI Research noted.

Temasek, Axiata potential buyers of Keppel&rsquo s 19% M1 stake: report

Major shareholders will take advantage of the divestment.

If Keppel Corporation decides to sell off its 19.08% stake in mobile operator M1, then the telco&rsquo s other major shareholders will likely be keen to snap up the divested shares.

A report by BMI Research said that Temasek and Malaysia-based telco Axiata Group will be the most obvious buyers of Keppel&rsquo s stake.

This is because acquiring Keppel&rsquo s stake will allow Axiata to own a controlling stake in M1, which in turn will give it better control over the telco' s business direction and assets. Axiata currently holds a 28.32% stake in M1 and lists it as a mobile associate.

Meanwhile, Keppel&rsquo s divestment will mean that the Singapore government, which holds stakes in all three operators, will be losing a major stake in the country' s smallest operator. This could spur Temasek to decide to re-invest in the company through a different arm.

&ldquo Local conglomerate Keppel Corporation is reportedly considering divesting its 19.08% stake in operator M1 as part of the company' s move to sell off noncore assets as the company' s share price takes a beating from its poorly-performing core business. We believe these two shareholders could consider increasing their stakes in the operator if Keppel does decide to sell off its shares. : In the event that Keppel divests its 19.08% stake in M1, the operator' s largest shareholder, Axiata, would be keen to buy the stake to boost its share of profits. The Singapore government could also reclaim its interest in the smallest operator through a different investment unit,&rdquo BMI Research noted.