Tuas to Buy Singapore’s Telco M1 for $1.1 Billion
Singapore-headquartered TPG Telecom’s spin-off Tuas on Monday has launched an equity raise to help fund its acquisition of Singaporean telecommunications company M1 from the asset manager Keppel Corporation.
Through its subsidiary Simba Telecom, the operator of telecommunication assets in Singapore, Tuas has entered a binding share purchase agreement with Keppel Konnect and Konnectivity to acquire 100% of M1 Limited for an enterprise value of $1.11 billion on debt-free and cash-free basis, the company said in a bourse filing with Australian Securities Exchange (ASX).
Tuas is looking to raise at least $324.04 million through a non-underwritten institutional placement and share purchase plan. The floor price of the offer will be $4.08 per share, a 4.9% discount on the close price on 8 August.
Of the targeted equity raise value, the share purchase plan is expected to raise $38.95 million at the lower placement price of a 2% discount to the five-day volume-weighted average price up to the closing date of the SPP.
The company will also seek $860 million of fully underwritten acquisition bank debt financing, the company said in the filing.
Following the acquisition, Tuas expects pro-forma debt to the last-12-months EBITDA leverage ratio to be about four times. However, the company expects the pro-forma group will rapidly de-lever as synergies are realised and through continued operational discipline.
The deal is expected to be completed in the next few months subject to approval from Singapore’s Infocomm Media Development Authority.
Tuas Seeks Trading Halt
Tuas has entered a trading halt this morning, after confirming that it is undertaking a capital raise to fund the acquisition of Singaporean telco M1.
Tuas, which operates the Simba Telecom network in Singapore, requested that the trading halt remain in place until the earlier of an announcement about the outcome of its capital raise, and the start of trading on Wednesday.
TPG Telecom spin-off Tuas has launched an equity raise to help fund its acquisition of Singaporean telecommunications company M1 from the asset manager Keppel Corporation.
In the last 12 months (LTM) to 30 April 2025, M1 ex-ICT had revenues of 627.9 million and EBITDA of $152.2 million. The acquisition represents an implied multiple of 7.3x M1 ex-ICT LTM EBITDA (excluding any pro forma synergies).
Tuas Executive Chairman David Teoh said that since entering the Singapore market, Simba has enhanced competition and delivered exceptional value to consumers.
“The acquisition of M1 marks an exciting new chapter in our growth journey. It will strengthen our market position and enable us to deliver an even more robust network, unlocking the full potential of 5G mobile and 10Gbps broadband for consumers, SMEs, and enterprises alike. This transaction is a strategic step towards long-term, sustainable growth for Simba and our shareholders, and allows us to provide excellent quality of service to our customers,” he added.
