IMDA suspends review of Simba’s proposed acquisition of M1 amid probe

18/05/2026 40 Views

SINGAPORE: The Infocomm Media Development Authority (IMDA) has suspended its review of the proposed consolidation of M1 and Simba until further notice.

The authority said in a media release on Monday (May 18) that while its review was in progress, it learned that Simba could have been using radio frequency bands that had not been assigned to them to provide mobile services.

“This would constitute unauthorised use of frequency spectrum, which is a breach of the Telecommunications Act 1999 and the conditions of Simba’s Facilities-Based Operations Licence,” said IMDA, adding that it is investigating the matter and will take the appropriate enforcement actions if it is established.

“As the investigation findings may be material to IMDA’s assessment of the Proposed Consolidation, IMDA has decided to suspend its review of the proposed consolidation until the investigation has been concluded.”

Asset manager Keppel said in August that it would sell M1’s telecom operations to operator Simba Telecom for an enterprise value of S$1.43 billion (US$1.11 billion).

The deal is subject to regulatory approval by IMDA who said at the time that it will assess such applications in accordance with the Telecom and Media Competition Code.

IMDA said on Monday that this includes evaluating whether the consolidation would significantly lessen competition or raise public interest concerns. It also includes ensuring that the operation of critical telecommunications infrastructure meets the stringent cybersecurity requirements necessary in a heightened cyber risk landscape.

Since M1, the target of the acquisition, operates large mobile and broadband networks in Singapore, the assessment has necessarily been detailed and thorough, said the authority.

In response to IMDA’s announcement, Keppel said on Monday (May 18) that it understands the authority’s considerations and respects its decision.

“While awaiting the outcome of IMDA’s assessment, we have also been working on a Plan B, in case Keppel retains majority ownership of M1, which we will now start executing,” it said in a media release.

“In response to the significant challenges facing the telecommunication industry in Singapore, our focus will be on enhancing M1’s efficiency to improve its run rate EBITDA, through rightsizing the company and reducing costs, without adversely affecting customer experience.”

Keppel said that it has a 90-day plan to drive M1’s efficiency, which it will activate with immediate effect.

This includes reducing technology platform costs and network costs, using AI for automation, as well as product rationalisation, it said, adding that further details will be shared during its 1H 2026 results announcement.

“Even as we undertake the efficiency drive at M1, we believe that the telecommunication industry in Singapore is in need of and will benefit from consolidation and Keppel remains open to opportunities for divestment.

“On Keppel’s part, our target to monetise S$2 billion to S$3 billion of non-core assets in 2026 remains unchanged. The proposed divestment of our stake in M1’s telecommunication business will be removed from Keppel’s announced monetisation for 2025.”

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