KUALA LUMPUR (Sept 24): Axiata Group Bhd’s 28.69%-owned M1 Ltd would see possible shares transaction between its two Singapore substantial shareholders — Keppel Corporation Ltd and Singapore Press Holdings Ltd (SPH) — as both are considering a transaction involving their equity interest in the Singapore-listed telco.

This raises question whether Axiata would also be part of the plan, as the group attempted to divest last year, although the plan was called off.

When contacted, Axiata told theedgemarkets.com it will make an announcement soon on the matter.

The three companies have suspended their share trading in the Singapore Exchange (SGX). However, Axiata has so far made no announcement to Bursa Malaysia.

Axiata was trading one sen or 0.21% lower at RM4.67 as at 10:43am, giving it a market capitalisation of RM42.45 billion.

In its filing with SGX today, Keppel Corp said the transaction involves its indirect interest in M1, which “may or may not” lead to a transaction for shares in M1.

“The Company (Keppel Corp) wishes to emphasise, in each case, that there is no certainty or assurance that any transaction will occur. If and when there are any material developments which warrant disclosure, the Company will, in compliance with applicable rules, make further announcements as appropriate,” the filing read.

M1’s financial year ended Dec 31, 2017 (FY17) annual report shows Keppel Corp owns 19.33% stake in M1 as of Feb 22 this year, while SPH has 13.45% shareholdings.

In a separate filing with SGX, SPH said it was approached by Keppel Corp to participate in a “possible transaction” involving its indirect interest in M1.

SPH also stressed there is “no certainty or assurance” that any transaction will occur.

Prior to their trade suspension, Keppel Corp fell one cent or 0.14% to SG$7.02, valuing the group at SG$12.74 billion.

SPH, on the other hand, declined one cent or 0.35% to SG$2.81, giving it a market capitalisation of SG$4.51 billion.

M1, which was suspended before Singapore market open, was last closed at SG$1.63, a year-to-date discount of 8.4%, compared with its share price of RM1.78 on Jan 2 this year.