Friday 29 Mar 2024
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KUALA LUMPUR (Sept 27): Singapore-listed M1 Ltd, in which Axiata Group Bhd owns a 28.69% stake, received a pre-conditional offer of S$2.06 per share from Keppel Corp Ltd and Singapore Press Holdings Ltd (SPH) to buyout all shares they do not own in the telco, according to the announcement to Singapore Exchange (SGX) this morning.

Based on the offer price of S$2.06 per share, Axiata’s block of 265.41 million shares in hand will be worth S$546.7 million or RM1.658 billion.

The offer price represents a 26% premium over the last trading price of S$1.63 before the stock was suspended from trading early this week.

The announcement said the share purchase offer will be made through a joint venture called Konnectivity Pte Ltd, in which Keppel and SPH hold equity interest.

Axiata had in the past indicated its intention to hive off the equity stake in M1. Yesterday, the Malaysian telco said it had already sought advice from “a financial institutions” in anticipation of any share transaction in M1.

Axiata reiterated that it would "vigorously protect" and enhance shareholders' 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 incorporates acceptable control premium based on market norms and precedent transactions of similar nature," said Axiata in the statement.

Axiata is the single largest shareholder of M1 holding 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.

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