Singaporean conglomerate Keppel Corporation and Singapore Press Holdings have succeeded in their takeover bid for the market's third largest mobile operator M1 after obtaining majority control of the company.
Konnectivity, the joint venture established to mount the conditional takeover offer, has now obtained or arranged to acquire control of 76.35% of M1.
M1's largest shareholder Axiata Group has accepted the joint S$2.06 ($1.52) per share offer for its 28.67% stake, which has been combined with Keppel Corporation's 19.23% stake, Singapore Press Holdings' 13.38% and the acceptances of minority shareholders.
As a result, Konnectivity's conditional takeover offer has now become unconditional. Remaining shareholders will have until March 4 to accept the buyout offer.
In a statement, the joint venture's owners said the acquisition will mark the first stage in a long-term plan to transform M1 to put it in a better position to compete against larger rivals Singtel and StarHub.
“The increasingly challenging and competitive market conditions in the Singapore telecommunications sector requires M1 to take bold steps to transform," the company's CEO Loh Chin Hua said.
The joint venture first announced its conditional takeover bid in January. Axiata Group had reportedly considered the purchase price to be too low, but Konnectivity ruled out raising the price in response.