SINGAPORE — Top shareholders in Singapore telecoms company M1 Ltd have approached potential buyers China Mobile and global private equity firms, among others, to sell their combined majority stake in the firm, sources familiar with the matter said.
The three main shareholders of Singapore’s smallest listed telecoms player, who own a combined 61 per cent, flagged a strategic review of their investments last month, and jointly appointed Morgan Stanley as their financial adviser.
First-round bids for M1, long seen as a target due to its small size and diverse shareholding, are expected in a few weeks, the sources said. They added that talks between the parties were still at an early stage and there was no certainty the process would succeed.
Under Singapore’s rules, an acquirer of a 30 per cent or more stake in a listed company is required to make an offer to buy out the rest of the shareholders.
Some of the sources said M1’s main shareholders would require a substantial control premium for the sale to get done.
State-run China Mobile, as well as local peers China Unicom Hong Kong Ltd and China Telecom Corp Ltd, the country’s big telecoms firms, are pursuing expansion plans beyond their home market.
If China Mobile acquires M1, it would mark its biggest overseas foray. The world’s largest mobile operator bought an 18 per cent stake in Thailand’s True Corp in 2014 after buying Pakistan telecoms firm Paktel in 2007. REUTERS
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