This article first appeared in The Edge Financial Daily on September 27, 2018

KUALA LUMPUR: Axiata Group Bhd, which holds a 28.69% stake in Singapore’s M1 Ltd, said it is already in discussions with “a financial institution” to act as an adviser to review various options that M1’s two substantial shareholders might offer soon.

Axiata reiterated that it would “vigorously protect” and enhance shareholder values of both Axiata and M1 when options are being reviewed.

“We believe that any offer from any party should not only reflect and consider the accurate future value of M1, but also incorporate acceptable control premiums based on market norms and precedent transactions of similar nature,” said Axiata.

The financial institution will also advise the group once Keppel Corp Ltd and Singapore Press Holdings Ltd (SPH) officially announce their proposed transaction, said the statement.

SPH and Keppel Corp’s unit Keppel Telecommunications & Transportation Ltd (KT&T) are considering making a general offer for the shares they do not already own in the city state’s smallest wireless operator, M1, reported Bloomberg quoting people with knowledge of the matter.

To recap, on Monday, Keppel Corp announced to the Singapore Exchange that it is considering a possible “share transaction” together with SPH in M1.

As at press time, no details were revealed to the investing public regarding the share transactions that Keppel and SPH intend to undertake in M1.

Axiata is the single largest shareholder of M1 holding a 28.69% stake in the Singapore-listed telco, followed by KT&T (19.33%) and SPH (13.45%). Keppel owns its equity interest in M1 via KT&T.

M1, which has been suspended from trading since Monday, last closed at S$1.63 (RM4.94), valuing it at S$1.51 billion.

Based on M1’s last traded price of S$1.63, Axiata’s stake is worth S$432.6 million.