M1's three big shareholders start stake reviews

They hold a total of 61.1% shares in M1.

M1 Ltd announced that its three substantial shareholders – Keppel Telecommunications & Transportation (KPTT), Axiata Group (Axiata) and Singapore Press Holdings (SPH) are working with a financial adviser to conduct a strategic review of their respective 28.5%, 19.2% and 13.4% stakes in M1.

According to OCBC, KPTT and SPH announced the same day to confirm their undertaking of a strategic review of their respective stakes in M1, but the three Singapore-listed companies clarified in their announcements that there is no assurance any transaction will materialise from such review and will make further announcements if there are any material developments.

Here's more from OCBC:

Recall that back in Jan 2016, it was also reported that Temasek, as part of its review on its investments, was looking at ways for Keppel to divest non-core assets including its stake in M1 but there were no further details/announcements since then.

Fundamentally, we continue to expect M1’s earnings to deteriorate amidst challenging operating environment as TPG gears up to become Singapore’s fourth telco. However, with the unexpected announcement on the strategic review that could potentially unlock value above its fundamental worth for M1’s shareholders, we put our FV and rating under review for now.

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