Keppel, SPH joint venture won't raise offer price for M1 shares, extends closing date

Keppel and SPH announced on 27 September last year their intention to buy the remaining shares in M1 they do not already own for up to S$1.27 billion. (PHOTO: Reuters)

Konnectivity Pte Ltd, a joint venture between Keppel Corp and Singapore Press Holdings, said it will not increase its offer price for telecom operator M1’s shares that it does not already own.

The firm also extended its closing offer date to 18 February from 5.30pm on 4 February, according to a stock exchange filing on Tuesday (22 January).

Konnectivity, which is majority owned by Keppel, said “it doesn’t intend to increase the offer price of S$2.06 in cash per offer share under any circumstances whatsoever”.

As of the close of market on Monday, Konnectivity had received acceptances of 9.74 million shares, or 1.05 per cent of total shares. This brought the total it owns, controls or agreed to be acquired to 34.35 per cent of total shares in telecom operator M1.

Keppel and SPH announced on 27 September last year their intention to buy the remaining shares in M1 they do not already own for up to S$1.27 billion, subject to the pre-condition of approval from the Info-communications Media Development Authority (IMDA).

On 28 December, the companies announced that the IMDA’s approval for the purchase had been granted.

The formal offer document was sent out on 7 January to shareholders. The offer will become unconditional when Konnectivity and connected parties obtain more than 50 per cent of the issued share capital of M1 by the close of the offer.

DBS Bank is the lead financial adviser and UOB is financial adviser to Keppel, while Credit Suisse (Singapore) is the sole financial adviser to SPH.

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