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Keppel Corp
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newbie2019
Veteran |
19-May-2026 11:35
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This has always been my perception, that the Keppel monetisation has not been progressing as swiftly as intended. That' s why Keppel appointed a new Task Force to Accelerate the Monetisation. Mr Lee Kok Chew is the Head of the Accelerating Monetisation Task Force (AMTF) at Keppel, where he oversees the strategic divestment of the company' s non-core assets.
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Delvyss
Elite |
19-May-2026 11:30
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M1-Simba thing is not a show-stopper. Plan B soon.
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tomwong
Member |
19-May-2026 11:26
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Does expediting other deals simply to fill this gap risking resulting in transactions that are not fully optimised? |
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newbie2019
Veteran |
19-May-2026 11:14
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CEO Loh still committing to $2-3 bn asset monetisation in 2026. The failed M1 deal will pressure Keppel to expedite other deals, ie AssetCo / rigs. This should be good. |
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Joelton
Supreme |
19-May-2026 10:42
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Keppel&rsquo s M1 sale stalls as IMDA probes alleged spectrum breaches by Simba Keppel shares down over 4% group to roll out Plan B to boost M1 operations in event it retains majority control [SINGAPORE] The Infocomm Media Development Authority (IMDA) has halted its assessment of the proposed consolidation between M1 and Simba Telecom until further notice. The suspension comes as the authority learnt that Simba could have been using radio frequency bands that it was not assigned to provide mobile services. &ldquo This would constitute unauthorised use of frequency spectrum, which is a breach of the Telecommunications Act 1999 and the conditions of Simba&rsquo s Facilities-Based Operations Licence,&rdquo the IMDA said on Monday (May 18). The authority said it will take enforcement action if it establishes that a breach of the rule has occurred. It has suspended its review of the proposed consolidation while it investigates the matter. IMDA said it has been assessing the proposed deal according to the framework set out in the Telecom and Media Competition Code, which entails evaluating whether the consolidation would &ldquo significantly lessen competition or raise public interest concerns&rdquo . This also includes ensuring that the operation of critical telecommunications infrastructure meets the stringent cybersecurity requirements necessary in a heightened cyber-risk landscape. &ldquo Since M1 (the target of the acquisition) operates large mobile and broadband networks in Singapore, the assessment has necessarily been detailed and thorough,&rdquo said IMDA. In response to the announcement, Keppel &ndash which in August 2025 proposed the S$1.43 billion sale of its M1 telco business to Simba &ndash said on Monday that it will respect IMDA&rsquo s decision. The proposed divestment will be removed from Keppel&rsquo s announced monetisation for 2025, even as its target to monetise S$2 billion to S$3 billion of non-core assets in 2026 &ldquo remains unchanged&rdquo . Keppel said it has been working on a &ldquo Plan B&rdquo , in case it retains majority ownership of M1, which it will now start executing. The asset manager said it intends to focus on &ldquo enhancing M1&rsquo s efficiency to improve its run rate Ebitda (earnings before interest, taxes, depreciation and amortisation) through rightsizing the company and reducing costs, without adversely affecting customer experience&rdquo . This is in response to the &ldquo significant challenges&rdquo plaguing the telecommunication industry in Singapore, it added. A 90-day plan to drive M1&rsquo s efficiency will be activated &ldquo with immediate effect&rdquo , said Keppel. This plan includes reducing technology platform costs and network costs, using artificial intelligence for automation, as well as product rationalisation. &ldquo Even as we undertake the efficiency drive at M1, we believe that the telecommunication industry in Singapore needs and will benefit from consolidation and Keppel remains open to opportunities for divestment,&rdquo the asset manager said. On the stock market, Keppel shares fell 4.6 per cent to S$10.11 in early trade in response to the news. Proposed S$1.43 billion deal Keppel on Aug 11, 2025, proposed divesting its 83.9 per cent effective stake in M1&rsquo s telco business to Simba. The all-cash deal had a S$1.43 billion enterprise value and was to net Keppel nearly S$1 billion in cash. On Aug 12, a day after news of the proposed sale broke, StarHub announced its S$105.2 million purchase of the remaining stake in MyRepublic&rsquo s broadband business it did not already own. The announcements seemed to confirm oft-discussed speculation about consolidation in a crowded telco market that has grown increasingly competitive over the past decade. M1, Simba and other relevant parties on Sep 26, 2025 submitted a consolidation application to the IMDA. Subsequently, Keppel announced on Mar 26 its joint agreement with Simba to extend the long-stop date for the proposed deal to May 21. Keppel will however, disregard the $1 billion it had expected to book from the sale from its announced monetisation for 2025. IMDA, which regulates the telco and media industries, says that in the course of its review of the deal, Simba is found to have used radio frequencies it was not assigned to. IMDA has commenced an investigation to this alleged flouting of the Telecommunications Act 1999 and the conditions of Simba&rsquo s Facilities-Based Operations Licence. |
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Joelton
Supreme |
19-May-2026 10:41
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Keppel shares fall up to 5% after M1-Simba deal suspended Simba parent Tuas Ltd down over 60% [SINGAPORE] Shares of Keppel : BN4 -2.83% fell as much as 5 per cent on Monday (May 18) morning after news of another delay to the M1-Simba deal. The counter dropped as low as S$10.07 as at 10.04 am, erasing more than S$900 million in Keppel&rsquo s market capitalisation with a S$0.50 drop. The Infocomm Media Development Authority (IMDA) on Monday said it had halted its assessment of the proposed consolidation between M1 and Simba Telecom until further notice. This comes as it learnt that Simba could have been using radio frequency bands that it was not assigned to provide mobile services. Shares of Keppel also fell as much as 4.6 per cent in January after news of a mutually agreed extension of the long-stop date for the proposed M1 deal. On the Australia exchange, Simba&rsquo s parent Tuas Ltd plunged over 60 per cent to A$2.22 on the news. Keppel in August last year announced plans to sell M1&rsquo s telco business to mobile network operator Simba for S$1.4 billion in an all-cash deal as part of its capital recyling programme. On Monday, Keppel said the proposed divestment will be removed from Keppel&rsquo s announced monetisation for 2025. |
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Joelton
Supreme |
19-May-2026 10:40
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Keppel to let M1-Simba deal lapse M1 to be restructured with focus on &lsquo rightsizing&rsquo Group says the telco industry in Singapore is in need of consolidation and will benefit from it [SINGAPORE] Keppel said on Monday (May 18) that it will allow the sale and purchase agreement between M1 and Simba to lapse upon reaching the long-stop date on May 21. It will also embark on a plan to restructure M1, with a focus on rightsizing and cost reduction. &ldquo There is nothing to stop us from discussing with third parties after the expiry of the agreement,&rdquo said Keppel CEO Loh Chin Hua during a virtual media briefing on Monday. This follows a Monday announcement by the Infocomm Media Development Authority that it has halted its assessment of the proposed M1-Simba consolidation until further notice. Keppel added that it remains &ldquo open to opportunities for divestment&rdquo , as the telco industry in Singapore is in need of consolidation and will benefit from it. However, Keppel noted that its focus will be on executing a &ldquo Plan B&rdquo that it prepared in the event that it retains majority ownership of M1, which it will activate immediately. The plan entails &ldquo enhancing M1&rsquo s efficiency to improve its run rate earnings before interest, taxes, depreciation and amortisation, through rightsizing the company and reducing costs&rdquo . Keppel&rsquo s 90-day plan to drive M1&rsquo s efficiency specifically focuses on &ldquo reducing technology platform costs and network costs, using artificial intelligence for automation, as well as product rationalisation&rdquo . In response to queries about potential redundancies as a result of the restructuring exercise, Keppel said that it is unable to share details at the moment. 2026 monetisation goals intact Loh said that Keppel&rsquo s goal to monetise S$2 billion to S$3 billion in non-core assets in 2026 &ldquo remains unchanged&rdquo . He said: &ldquo The new Keppel and our growth strategy remain unchanged. In real terms for investors, the impact is about S$0.07 to S$0.11 per share in terms of special dividends, which in the (grand scheme) of things is not that large.&rdquo Noting that Keppel&rsquo s special dividends are tied to the monetisation of its assets, Loh said: &ldquo (The sale of)M1 will be deferred from this year but we hope to bring other monetisation targets forward to (2026) to fill the gap.&rdquo He noted that Keppel has already recorded close to S$400 million worth of non-core asset divestments this year. &ldquo We will continue to explore opportunities for monetisation, so the special dividends have not gone away, they have just been deferred,&rdquo the CEO said. As Keppel looks to bring forward the divestment of certain assets to cover for the deferred M1 disposal, Loh said: &ldquo Some of the assets that could potentially be considered would be... our rig assets (as) the market conditions for offshore rigs have improved. We are also working on some potential real estate monetisation.&rdquo Between real estate and the rigs, Loh believes Keppel should be on track to hit its goal. The CEO singled out Keppel Bay Plot Six, a 99-year leasehold waterfront condominium development, as one of the real estate assets that can be monetised. Keppel may also consider monetising Keppel South Central this year as Loh noted that the leasing of the 33-storey commercial property located in Tanjong Pagar is improving. |
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Joelton
Supreme |
19-May-2026 10:39
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Keppel will divest property and rigs to offset M1 says CEO Loh In August last year, Keppel announced the proposed sale of M1 to Simba for $1 billion in cash. However on May 18 the IMDA announced it has suspended the review of Keppel' s planned sale of M1 to Simba. Given that approval from IMDA is one of the conditions required, the deal has been terminated. &ldquo Given IMDA decision, the proposed divestment of our stake in the M1 telco business will be removed from Keppel&rsquo s announced monetisation for 2025. At our 1Q2026 business update, we announced our target to monetise $2-3 billion of non-core assets in 2026. This remains unchanged, and we will continue to work towards our monetisation target. In real terms for our investors, the impact is about seven to 11 cents per share in terms of special dividends. We will continue to explore opportunities for monetisation, so the special dividends have not gone away, they have just been deferred,&rdquo Loh Chin Hua, group CEO, Keppel, says during a briefing to analysts and media. The special dividends are at the discretion of the Keppel board, but in FY2025, Keppel announced that it would pay out 10 to 15% of the monetisation received or realized in the financial year. To date, Loh says Keppel completed monetisations range from $300 million to $400 million this year. Loh says Keppel will look for other non-core assets to divest. &ldquo The market conditions on for offshore rigs have improved,&rdquo he adds. Keppel still owns around six legacy rigs and offshore assets which are valued in the $3.5 billion to $4 billion. &ldquo We are also working on some real estate potential, real estate monetisation, so between these and the rigs, we believe that we should be on target to hit $2-3 billion of monetisation for this year. For real estate, specifically, it includes Keppel South Central and also Keppel Plot Six. Plot six will be launched sometime in the middle of the year. Keppel South Central&rsquo s leasing is improving, and we believe that at some point when the leasing has reached a certain level, which we hope will be sometime this year, we will look at the monetisation,&rdquo Loh elaborates. Part of FY2026&rsquo s ordinary dividend will comprise of the earnings from the sale of Keppel Merlimau Cogen to Keppel Infrastructure Trust for $128 million. Loh says any payout from the sale will be part of ordinary dividends. Keppel&rsquo s FY2025 ordinary dividends comprised 15 cents interim dividend and 19 cents final dividend. In addition, Keppel Sakra Cogen will be commissioned in the middle of this year Loh says. OCBC Credit Research says its base case assumes that disposals and operating cash flow continue to be sufficient to fund new acquisitions and investments. &ldquo If the deal to consolidate M1 and Simba lapses, the industry will be back to a four-player Mobile Network Operator (MNO) market, and price wars could intensify again,&rdquo OCBC Credit Research suggests. According to Loh, for the M1 transaction, there were serious discussions involving at least two bidders. &ldquo We understand that Starhub was previously interested in acquiring M1. If Starhub acquires, we think its credit metrics could be strained if the deal were to be funded by debt. However, a longer-term consolidation in the market should return pricing to a more rational level, which should restore margins and protect longer-term profitability,&rdquo OCBC Credit Research adds. Keppel&rsquo s share price fell 2% on May 18, following the M1 announcement, but recovered from a mid-morning low when it was down 4%. |
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Joelton
Supreme |
19-May-2026 10:29
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CGSI downgrades Keppel to ' hold' following scuppered M1 sale Lim Siew Khee and Meghana Kande of CGS International have downgraded Keppel from " add" to " hold" , following news that the sale of M1 to Simba has fallen through, putting a brake on the company' s divestment moves, plus potentially lower dividend payout. From a previous target price of $13.52, they' ve cut their target price to $11.50. On May 18, regulator IMDA, which was reviewing this deal, announced it is instead investigating Simba for allegedly using frequency spectrum it was not assigned to - deemed a potential breach of law. With the sale to Simba off, Keppel will now focus on improving efficiency at M1 via right-sizing, lower network costs and also product rationalisation. Keppel, which was to have sold M1 to Simba for $1 billion, maintains that its FY2026 monetisation target of between $2 and $3 billion is intact. Keppel remains open to divesting M1 but Lim and Kande figure the process will be delayed by one to two years. For FY2025, while M1 divestment was still pending regulatory approval, Keppel declared a dividend per share of 47 cents, including a special dividend of 13 cents, which consists of 2 cents cash and 11 cents in Keppel REIT units. This payout was based on 15% of the $1.6 billion worth of assets Keppel monetised in FY2025. With the latest development, Lim and Kande have " conservatively" cut their dividend assumptions for FY2026 from 48 cents to 45 cents, including a normal dividend of 28 cents and a special dividend of 16 cents, on the back of $2 billion asset monetisation and 15% payout for the special dividend portion. Besides M1, other assets ready for sale include Keppel Bay plot 6, Keppel South Central and a portfolio of legacy oil rigs held under Rigco. Upside risks include higher-than -expected monetisation and AUM growth in FY2026. On the other hand, downside risks include slower-than-expected asset monetisation impacting dividend payout and weaker integrated power business. Keppel shares closed at $10.38, down 2.38% for the day. Tuas, the Australia-listed entity that owns Simba, plunged by 62.79% to A$2.27. |
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Delvyss
Elite |
19-May-2026 09:56
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Jipped some | ||||
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YuanLong94
Member |
19-May-2026 09:50
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Yes, around there, usually they start their sharebuyback at around 10am singapore time.
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Newbie2025
Senior |
19-May-2026 09:28
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Sir, is Keppel spend abt $210mil in the share buyback as of today?
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PiRPiR
Master |
19-May-2026 07:33
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https://bt.sg/fueZ
Analysts tip StarHub as 'obvious' front runner for M1 after Simba merger stalls The setback is expected to weigh on Keppel, which had planned to monetise M1 through the deal |
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PiRPiR
Master |
19-May-2026 07:28
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https://www.straitstimes.com/business/companies-markets/failed-simba-m1-deal-could-pose-setback-to-keppel-lead-to-more-cost-pressures-for-telcos
Failed Simba-M1 deal could pose setback to Keppel, lead to more cost pressures for telcos SINGAPORE - Singapore?s telco operators will likely face further cost pressures in the near term, after the Infocomm Media Development Authority (IMDA) on May 18 suspended its review of a proposed merger between M1 and Simba. The failed merger of M1 and Australia-backed Simba, Singapore?s third- and fourth-largest telcos, could also pose a setback to M1?s parent company Keppel?s asset-light transformation strategy. The sale of the telco would have unlocked around $1 billion for the asset manager. Analysts told The Straits Times that the telco industry would have benefited from market consolidation as it would have eased highly competitive pricing and helped the recovery of the telcos? average revenue per user (ARPU), which has already been in decline. But this deal is now likely dead in the water, with Keppel confirming in a briefing with the media and analysts on May 18 that it will allow the sale and purchase agreement between M1 and Simba to lapse upon reaching the long-stop date on May 21. This deadline had already been extended on March 26 when it was originally supposed to expire. A long-stop date is the contractual deadline by which conditions, including regulatory approvals, must be satisfied or waived, or the parties involved can walk away. Ms Chu Peng, an analyst at OCBC Bank, said the failed deal would preserve the current dynamic of a fragmented four-player structure that has long suffered from intense price competition, keeping margins under pressure and likely sustaining aggressive consumer pricing in the near term. ?A merger would have been structurally positive for the industry. Without it, competition among the telco operators is unlikely to ease, which will continue to weigh on the earnings outlook of their Singapore telco businesses.? Mr Hussaini Saifee of Maybank added that the Singapore market is suffering from high single-digit to double-digit revenue declines, and therefore too small and crowded to sustain four telco players. Market recovery will be further delayed with the failed consolidation, he said. StarHub chief executive Nikhil Eapen had previously told ST in an interview in January 2026 that a prolonged cut-throat price war would deter telcos from increasing investments in critical areas such as cybersecurity and innovation. Shares of StarHub and Singtel briefly dipped by around 1 per cent and 0.6 per cent respectively after the market opened on May 18. By midday, Singtel?s counter had bounced back and it climbed through the day to close 1 per cent higher at $4.87. StarHub, meanwhile, closed flat at $1. The merger between M1 and Simba was first announced in August 2025 but subject to a prolonged review by IMDA afterwards. The regulator had been evaluating whether the consolidation would significantly lessen competition or raise public interest concerns. The review also includes ensuring that the operation of critical telecoms infrastructure meets the stringent cybersecurity requirements necessary in a heightened cyber-risk landscape, IMDA said. Simba?s alleged breach of the Telecommunications Act and the conditions of its facilities-based operations licence is also unprecedented, analysts noted. Mr Robson Lee, director of law firm Legal Solutions, said this is the first reported incident of such a nature by a telco operating in Singapore. ?Without firmer details of the conditions that Simba had allegedly breached, it would be difficult to determine the consequences and potential penalties meted out.? It is also unclear if the breach was done by Simba?s officers or the company as an entity, he added. Market recovery will be further delayed with the failed consolidation, he said. StarHub chief executive Nikhil Eapen had previously told ST in an interview in January 2026 that a prolonged cut-throat price war would deter telcos from increasing investments in critical areas such as cybersecurity and innovation. Shares of StarHub and Singtel briefly dipped by around 1 per cent and 0.6 per cent respectively after the market opened on May 18. By midday, Singtel?s counter had bounced back and it climbed through the day to close 1 per cent higher at $4.87. StarHub, meanwhile, closed flat at $1. The merger between M1 and Simba was first announced in August 2025 but subject to a prolonged review by IMDA afterwards. The regulator had been evaluating whether the consolidation would significantly lessen competition or raise public interest concerns. The review also includes ensuring that the operation of critical telecoms infrastructure meets the stringent cybersecurity requirements necessary in a heightened cyber-risk landscape, IMDA said. Simba?s alleged breach of the Telecommunications Act and the conditions of its facilities-based operations licence is also unprecedented, analysts noted. Mr Robson Lee, director of law firm Legal Solutions, said this is the first reported incident of such a nature by a telco operating in Singapore. ?Without firmer details of the conditions that Simba had allegedly breached, it would be difficult to determine the consequences and potential penalties meted out.? It is also unclear if the breach was done by Simba?s officers or the company as an entity, he added. Keppel, lead to more cost pressures for telcos Failed Simba-M1 deal could pose setback to Keppel, lead to more cost pressures for telcos Get ST's newsletters delivered to your inbox The failed Simba-M1 merger would prolong an aggressive price war and hurt telcos' earnings, analysts said. The failed Simba-M1 merger would prolong an aggressive price war and hurt telcos' earnings, analysts said. ST PHOTO: SHINTARO TAY Google Preferred Source badge Published May 18, 2026, 08:45 PM Updated May 19, 2026, 12:01 AM Listen SINGAPORE - Singapore?s telco operators will likely face further cost pressures in the near term, after the Infocomm Media Development Authority (IMDA) on May 18 suspended its review of a proposed merger between M1 and Simba. The failed merger of M1 and Australia-backed Simba, Singapore?s third- and fourth-largest telcos, could also pose a setback to M1?s parent company Keppel?s asset-light transformation strategy. The sale of the telco would have unlocked around $1 billion for the asset manager. Analysts told The Straits Times that the telco industry would have benefited from market consolidation as it would have eased highly competitive pricing and helped the recovery of the telcos? average revenue per user (ARPU), which has already been in decline. But this deal is now likely dead in the water, with Keppel confirming in a briefing with the media and analysts on May 18 that it will allow the sale and purchase agreement between M1 and Simba to lapse upon reaching the long-stop date on May 21. This deadline had already been extended on March 26 when it was originally supposed to expire. A long-stop date is the contractual deadline by which conditions, including regulatory approvals, must be satisfied or waived, or the parties involved can walk away. Ms Chu Peng, an analyst at OCBC Bank, said the failed deal would preserve the current dynamic of a fragmented four-player structure that has long suffered from intense price competition, keeping margins under pressure and likely sustaining aggressive consumer pricing in the near term. Top stories Explore top stories from all sections in one place Mr Andyn Kadir, 41, posing atop Mount Raung, standing at about 3,340m above sea level, in East Java. Singapore Mount Dukono tragedy: Singapore climbers sticking to plans to scale active volcanoes One of the two peregrine falcon chicks that died, likely from a collision with an artificial structure. Singapore Man-made structures named top culprit as bird fatality reports in Singapore hit record high Higher marine fuel prices and slower container shipping speeds - known as 'slow steaming' - are some reasons why refueling has declined. Business More ships arrive in Singapore as Iran war disrupts Middle East routes, but fewer refuelling here The WHO chief Tedros Adhanom Ghebreyesus told the assembly that "we live in difficult, dangerous and divisive times". World Ebola and hantavirus outbreaks sign of our ?dangerous? times: WHO Emergency workers respond at the scene of a reported active shooter situation at the Islamic Center in San Diego, California, on May 18. World Five dead, including two teen suspects, after shooting at San Diego mosque People walking past a billboard about the Strait of Hormuz, in Tehran, Iran, on May 17. World Trump says there?s a ?good chance? of Iran nuclear deal after delaying strike Senior Minister Lee Hsien Loong (centre) with (from left) Beibu Gulf International Port Group general manager Ma Zhengguo and Guangxi Zhuang Autonomous Region People's Government chairman Wei Tao in Nanning, Guangxi, on May 18. Asia Guangxi?s Pinglu Canal to boost growing trade between South-east Asia and China Automobile Megamart's lease renewal will enable the owners to continue operating until end-2040. Singapore Lease for S?pore?s largest used-car hub set to be renewed till 2040 after owners pay $68m ?A merger would have been structurally positive for the industry. Without it, competition among the telco operators is unlikely to ease, which will continue to weigh on the earnings outlook of their Singapore telco businesses.? Mr Hussaini Saifee of Maybank added that the Singapore market is suffering from high single-digit to double-digit revenue declines, and therefore too small and crowded to sustain four telco players. Market recovery will be further delayed with the failed consolidation, he said. StarHub chief executive Nikhil Eapen had previously told ST in an interview in January 2026 that a prolonged cut-throat price war would deter telcos from increasing investments in critical areas such as cybersecurity and innovation. Shares of StarHub and Singtel briefly dipped by around 1 per cent and 0.6 per cent respectively after the market opened on May 18. By midday, Singtel?s counter had bounced back and it climbed through the day to close 1 per cent higher at $4.87. StarHub, meanwhile, closed flat at $1. The merger between M1 and Simba was first announced in August 2025 but subject to a prolonged review by IMDA afterwards. The regulator had been evaluating whether the consolidation would significantly lessen competition or raise public interest concerns. The review also includes ensuring that the operation of critical telecoms infrastructure meets the stringent cybersecurity requirements necessary in a heightened cyber-risk landscape, IMDA said. Simba?s alleged breach of the Telecommunications Act and the conditions of its facilities-based operations licence is also unprecedented, analysts noted. Mr Robson Lee, director of law firm Legal Solutions, said this is the first reported incident of such a nature by a telco operating in Singapore. ?Without firmer details of the conditions that Simba had allegedly breached, it would be difficult to determine the consequences and potential penalties meted out.? It is also unclear if the breach was done by Simba?s officers or the company as an entity, he added. IMDA suspends review of proposed Simba-M1 merger amid probe into possible breach Keppel to allow Simba?s bid for subsidiary M1 to lapse, explore new buyers Impact on Keppel?s transformation In a statement on May 18, Keppel chief executive Loh Chin Hua said the company will now embark on a 90-day plan to enhance M1?s efficiency by reducing technology platform and network costs and using AI for automation. He said the company will share more details about these plans in its results briefing for the first half of the 2026 financial year, which is expected to take place in July. Keppel will remove the proposed divestment of its stake in M1 from its announced monetisation for 2025, while its target to divest $2 billion to $3 billion of non-core assets in 2026 ? announced during its first-quarter business update in April ? will remain unchanged. Responding to an analyst?s question during Keppel?s briefing, Mr Loh said the company?s objective is to ?strengthen M1 and make it more valuable and attractive?, so that it will receive the optimal valuation when it divests the telco. M1?s operations will not have an impact on Keppel?s earnings, he added. But the one-off special dividend of seven to 11 cents arising from the sale of M1 to Simba would now be deferred until it has divested the telco. ?We hope to bring other monetisation targets forward to this year to fill the gap,? he added. M1 chief executive Manjot Singh Mann said that following the complete deployment of its 5G network, the telco will now be looking to reduce its capital expenditure over a period of time to focus more on operations and maintenance. In the meantime, the failed M1 sale to Simba could put a dent in Keppel?s business, analysts said. Mr Nicholas Yon, manager at brokerage firm Lim and Tan Securities, said Keppel would now be under pressure to turn M1 around in the face of increased competition from Simba, setting them back on their monetisation goals. While the merger was also meant to share infrastructure costs between the two merged telcos, he believed that M1 would now have to increase its capex spending in order to compete with incumbents Singtel and StarHub. OCBC?s Ms Chu said the suspension of the merger is likely to disappoint investors who will be missing out on a chunk of the special dividends payout. But progress on its $3 billion divestment target should help cushion this absence in the interim. In their note on May 18, CGS International analysts Lim Siew Khee and Meghana Kande downgraded their rating for Keppel from ?add? to ?hold?. They noted that while Keppel could see assets under management growth in FY2026, downside risks include slower-than-expected asset monetisation impacting dividend payout and a weaker integrated power business. Other assets that Keppel could potentially divest include condominium development Keppel Bay Plot 6, commercial building Keppel South Central, as well as Rigco Holding which holds 13 legacy offshore drilling rigs. Keppel?s shares tumbled when trading opened on May 18 and were already down 4 per cent at $10.18 at 9.28am. The counter closed 2.1 per cent lower at $10.38. New suitors for M1, trouble brewing for Simba Following the expiry of the long-stop date, Keppel would be free to start negotiations with other potential buyers for its divestment of M1. Mr Loh confirmed at the briefing that it had been in serious discussions with at least two bidders. StarHub, the second-largest telco, had been rumoured for some time to be in the running to acquire M1 before Simba closed the deal with Keppel. Some analysts say it is possible that StarHub could restart negotiations again, as a successful acquisition would allow it to compete on a more equal footing with Singtel, which has the largest market share at around 45 per cent. Mr Yon said that a merger between M1 and Singtel is highly unlikely due to Singapore?s antitrust laws forbidding market leaders making such big moves, though exceptions have been made in other industries in the past. He cited the case of leading steel fabricator BRC Asia acquiring its rival Lee Metal Group for $199.3 million in 2018, which was approved by the Competition and Consumer Commission of Singapore. A StarHub-M1 merger could spell further trouble for Simba. Its market share would be significantly dwarfed by the two incumbents, posing a risk to its long-term viability, he noted. On the Australian Stock Exchange, shares of Simba?s parent company Tuas plunged as much as 72.1 per cent from last week?s close of A$6.10 to A$1.98. The counter later closed 62.8 per cent down at A$2.27. Tuas had reported a 26 per cent increase in its revenue at $78.1 million, and 27 per cent EBITDA (earnings before interest, taxes, depreciation and amortisation) growth at $42.1 million for the first half of the financial year ended Jan 31, 2026. It attributed its growth to a ?rapidly expanding subscriber base? for its mobile and broadband business. It said in its report that it would continue to strengthen Simba?s positioning across both mobile and fibre broadband segments, with a capex of $50 million to $55 million. The telco did not respond to ST?s queries. |
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PiRPiR
Master |
19-May-2026 01:17
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https://www.theedgesingapore.com/news/ma/keppel-will-divest-property-and-rigs-offset-m1-says-ceo-lo
Keppel will divest property and rigs to offset M1 says CEO Loh The Edge Singapore Mon, May 18, 2026 ? 09:14 PM GMT+08 ? 3 min read In August last year, Keppel announced the proposed sale of M1 to Simba for $1 billion in cash. However on May 18 the IMDA announced it has suspended the review of Keppel's planned sale of M1 to Simba. Given that approval from IMDA is one of the conditions required, the deal has been terminated. ?Given IMDA decision, the proposed divestment of our stake in the M1 telco business will be removed from Keppel?s announced monetisation for 2025. At our 1Q2026 business update, we announced our target to monetise $2-3 billion of non-core assets in 2026. This remains unchanged, and we will continue to work towards our monetisation target. In real terms for our investors, the impact is about seven to 11 cents per share in terms of special dividends. We will continue to explore opportunities for monetisation, so the special dividends have not gone away, they have just been deferred,? Loh Chin Hua, group CEO, Keppel, says during a briefing to analysts and media. The special dividends are at the discretion of the Keppel board, but in FY2025, Keppel announced that it would pay out 10 to 15% of the monetisation received or realized in the financial year. To date, Loh says Keppel completed monetisations range from $300 million to $400 million this year. Loh says Keppel will look for other non-core assets to divest. ?The market conditions on for offshore rigs have improved,? he adds. Keppel still owns around six legacy rigs and offshore assets which are valued in the $3.5 billion to $4 billion. ?We are also working on some real estate potential, real estate monetisation, so between these and the rigs, we believe that we should be on target to hit $2-3 billion of monetisation for this year. For real estate, specifically, it includes Keppel South Central and also Keppel Plot Six. Plot six will be launched sometime in the middle of the year. Keppel South Central?s leasing is improving, and we believe that at some point when the leasing has reached a certain level, which we hope will be sometime this year, we will look at the monetisation,? Loh elaborates. Part of FY2026?s ordinary dividend will comprise of the earnings from the sale of Keppel Merlimau Cogen to Keppel Infrastructure Trust for $128 million. Loh says any payout from the sale will be part of ordinary dividends. Keppel?s FY2025 ordinary dividends comprised 15 cents interim dividend and 19 cents final dividend. In addition, Keppel Sakra Cogen will be commissioned in the middle of this year Loh says. OCBC Credit Research says its base case assumes that disposals and operating cash flow continue to be sufficient to fund new acquisitions and investments. ?If the deal to consolidate M1 and Simba lapses, the industry will be back to a four-player Mobile Network Operator (MNO) market, and price wars could intensify again,? OCBC Credit Research suggests. According to Loh, for the M1 transaction, there were serious discussions involving at least two bidders. ?We understand that Starhub was previously interested in acquiring M1. If Starhub acquires, we think its credit metrics could be strained if the deal were to be funded by debt. However, a longer-term consolidation in the market should return pricing to a more rational level, which should restore margins and protect longer-term profitability,? OCBC Credit Research adds. Keppel?s share price fell 2% on May 18, following the M1 announcement, but recovered from a mid-morning low when it was down 4%. |
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YuanLong94
Member |
18-May-2026 22:06
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new Keppel aum 12million per quarter One year +50 million M1 profit reverse back originally one in one out , m1 gone cover by Bifrost now we have both add on to profit monetization I2 mall and Seatrium 700million plus so far announce on 1st April and special dividends on April 2027 Ex dividends Keppel sharebuyback 600k share , the more they buy , the more it come back as profit , take for example if Keppel spend 500m last year , they will get the 5% of 500m instead of the 10 dollar price now. The dividend declare will back to Keppel as dividends as extra investment income .
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Newbie2025
Senior |
18-May-2026 21:33
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Wah Sir, any upcoming strong good news in the months ahead?..😂 😂 😂
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Tob231
Elite |
18-May-2026 20:12
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dragonfly doji ... likely to turn around | ||||
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JurongW
Elite |
18-May-2026 18:05
Yells: "Earnings give weight, Chart give wings" |
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SBB today - 600,000 shares bought at 10.27 to 10.43 ($6,220,120) |
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newbie2019
Veteran |
18-May-2026 14:23
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Tuas (Simba) share dropped 62% today. https://www.google.com/finance/beta/quote/TUA:ASX?sa=X& ved=2ahUKEwi2hYOmmcKUAxV31zgGHa1ePfkQ3ecFegQIKBAP& window=5D
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