Keppel has inked a deal to sell its majority stake in M1’s telco business to Simba Telecom for S$1.43 billion, marking a major shift in the company’s focus toward digital infrastructure. The deal, which values M1’s telco operations at an attractive multiple, signals a fresh chapter for Singapore’s telecom landscape while sharpening Keppel’s strategic vision.
A Bold Step Towards Streamlining Assets
After holding an 83.9% effective stake in M1, Keppel will receive nearly S$1 billion in cash from the sale to Simba Telecom. Despite taking an accounting loss estimated at S$222 million, the transaction crystallizes significant value from a decades-long investment that started back in 1994 when Keppel was one of M1’s founding members. The company has already pulled in over S$700 million cumulatively from dividends, privatisation efforts, and previous divestments related to M1.
Keppel isn’t walking away entirely, though. The ICT arm of M1, known for its rapid growth and complementary role alongside Keppel’s existing digital connectivity businesses — including data centers and subsea cables — remains under Keppel’s umbrella. This carve-out underscores Keppel’s pivot toward becoming a more asset-light global asset manager, focusing on areas with higher growth potential and scalability.
The deal’s 7.3x EV/EBITDA multiple suggests strong confidence in M1’s underlying value. It also highlights the strategic consolidation brewing within Singapore’s telecom industry, where scale and digital agility are paramount.
Why This Matters for Singapore’s Digital Future
This transaction goes beyond a mere change in ownership. It potentially reshapes Singapore’s telco ecosystem by combining the strengths of two digitally savvy players: M1’s cloud-native, hyper-personalized service platform and Simba Telecom’s innovative consumer model.
By pooling resources, network infrastructure, and technology, the merged telco could turbocharge Singapore’s digital economy. The consolidation is expected to deliver cost efficiencies, better service innovation, and enhanced competitive edge — benefits that will likely trickle down to consumers and businesses alike.
Think of it like two finely tuned engines coming together to build a supercharged machine, ready to power the nation’s future connectivity demands.
A Clear Signal from Keppel on Where It’s Heading
Keppel’s decision to divest M1’s traditional telco business fits neatly into a broader trend where legacy telecom assets are being streamlined to prioritize next-gen digital infrastructure. The company’s focus will now be sharper on expanding its footprint in data centers, subsea cables, and ICT services — sectors seen as vital pillars for digital transformation across Asia and beyond.
This move is aligned with Keppel’s vision to remain nimble and asset-light, steering away from capital-intensive businesses toward areas where they can deploy capital more efficiently and scale faster.
Looking Back and Ahead: The Financials and Strategy
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Keppel’s cash inflow from the sale is close to S$1 billion.
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The deal values M1’s telco business at a 7.3x EV/EBITDA multiple.
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Despite an estimated S$222 million accounting loss, the transaction unlocks long-term investment gains.
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Keppel keeps M1’s ICT business and some other assets outside this deal.
| Aspect | Details |
|---|---|
| Deal Value | S$1.43 billion (enterprise value) |
| Keppel Stake Sold | 83.9% in M1’s telco business |
| Expected Cash Proceeds | ~S$1.0 billion |
| Accounting Impact | Estimated loss of S$222 million |
| Retained Assets | M1’s ICT business and others |
Keppel’s move reflects broader industry dynamics where companies are reconfiguring portfolios to emphasize infrastructure critical for the digital economy — a sector projected to grow strongly amid rising data demand, cloud adoption, and digital services.
With this sale, Keppel is betting big on its future as a leading player in digital infrastructure, leaving behind traditional telco operations while keeping a stake in promising ICT growth.
