Singapore's telcos have been consolidating with announcements involving M1 and StarHub in quick succession. First, Keppel divested its M1 telco business to Simba Telecom via subsidiaries for S$1.43 B, subject to post-completion adjustments.
Keppel will receive close to S$1 B in cash proceeds for its 83.9% effective stake in M1, while retaining M1’s information and communication technology (ICT) business which complements Keppel’s integrated connectivity business, including data centres and subsea cables.
Keppel said the proposed transaction is expected to benefit Singapore’s telecommunications sector and consumers through market consolidation and harnessing synergies between two of the nation’s agile and digitally-driven telcos with strong track records for innovation. Keppel disclosed that Simba had put forward the strongest bid from among interested parties and its combination with M1 is expected to create further revenue pools and career opportunities as they have "the least overlap in resources".
M1’s "digitally transformed, cloud-native network with its ability to deliver hyperpersonalised services through an advanced tech stack" will be combined with Simba’s "innovative digital consumer model", Keppel said, resulting in more synergies on network and infrastructure, and "a nimble and competitive digital-first telco to power Singapore’s digital economy".
The proposed divestment is in line with Keppel’s strategy as an asset-light global asset manager and operator, and will sharpen the company’s focus within its connectivity segment on digital infrastructure. Taking into account Keppel’s initial investment in M1 in 1994 as one of its founding members, the subsequent privatisation of M1 as well as dividends and divestment proceeds from 1994 to 2025, Keppel is expected to receive cumulative cash of more than S$700 M with the proposed transaction.
Simba’s bid is a compelling all-cash offer at an attractive valuation, reflecting Keppel’s successful transformation of M1 from a traditional telco into a digital first network operator since its privatisation in 2019, Keppel said.
Keppel hopes to complete the proposed transaction over the next few months, subject to regulatory approval by Singapore’s Infocomm Media Development Authority.
Loh Chin Hua, CEO of Keppel said: “The proposed transaction offers a strategic path to sustainable growth for Singapore’s telco sector. M1 and Simba are a highly synergistic combination — together, they can scale more efficiently, optimise infrastructure, and accelerate 5G and digital investments, greatly enhancing service quality while contributing to a more resilient, future-ready telco industry.
“For Keppel, the divestment of M1’s telco business is the latest step in our transformation, as we simplify our business and advance our strategy and focus as a global asset manager and operator. It is over and above the S$14.4 B* non-core portfolio that we have identified for monetisation, and the cash of close to S$1 B to be unlocked can be channelled to growth opportunities aligned with the New Keppel**, lower our debt or reward our shareholders. This will not only improve the New Keppel’s ROE*** but also support the market’s further re-rating of Keppel.”
The news was followed a day later by StarHub announcing that its wholly-owned subsidiary, StarHub Online, had successfully completed the acquisition of the remaining 49.9% stake in MyRepublic Broadband (MR Broadband). The transaction also includes the MyRepublic brand in Singapore and selected key operational assets of MyRepublic Group associated with MR Broadband’s business and operations.
With this milestone, MR Broadband is now a wholly-owned subsidiary of StarHub, reinforcing the company’s leadership in Singapore’s broadband market.
The acquisition allows StarHub to assume full ownership of MR Broadband, enabling greater strategic alignment. It also secures the brand equity in Singapore as well as operational assets integral to MR Broadband’s operations. This move strengthens StarHub’s multibrand, multisegment strategy in the Singapore broadband market and enables greater value creation through service differentiation and cross-product bundling, StarHub said.
“This isn’t just an acquisition. It’s an acceleration,” said Nikhil Eapen, Chief Executive, StarHub.
“We’ve laid a strong foundation for growth and with MR Broadband fully under our wing, we can move faster, go further, and serve customers with even greater clarity and care.”
The transaction marks a major milestone for StarHub, coming after the successful completion of its transformation journey to digitise, automate, and modernise its core business. With this foundation firmly in place, StarHub is now focused on continuous innovation to enhance customer experiences and drive sustainable growth, the telco said, pointing out that the broadband landscape in Singapore is shifting and it is "moving decisively to shape the next phase of consolidation with a clear focus on customer outcomes".
“We’re in a phase of consolidation and we’re not just watching it unfold, we’re shaping it,” added Eapen.
“As the market shifts, scale, quality, and resilience matter more than ever. Smaller players may find it harder to sustain, especially without robust platforms. Our role is to step up to provide the reliability, performance, and consistency that customers deserve at a time when they need it most.”
This acquisition reinforces StarHub’s position as the provider of choice for local consumers who demand better and ensures more customers in Singapore will benefit from trusted, high-quality broadband and mobile services with no compromise on experience.
*The S$14.4 B refers to carrying value of the Non-Core Portfolio for Divestment as at 30 June 2025. The Non-Core Portfolio for Divestment comprises mainly legacy offshore & marine assets, residential landbank, selected property developments and investment properties, hospitality and logistics assets, associated cash and receivables, and other non-core investments that are not aligned with Keppel’s strategic focus as an asset-light global asset manager and operator.
**'New Keppel' refers to the company after it transformed from conglomerate into a differentiated global alternative real asset manager and operator, a move that was announced in 2023 and went into full swing in 2024. New Keppel excludes the Non-Core Portfolio for Divestment.
***ROE stands for return on equity. ROE (excluding Non-Core Portfolio) refers to the return generated on the average shareholders’ funds of the New Keppel, i.e. excluding equity that is attributable to the Non-Core Portfolio. Pro forma annualised ROE of New Keppel is calculated assuming the Proposed Transaction was completed on 1 January 2025 and with the one-off estimated loss on divestment to Keppel excluded from the annualised net profit.
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