SINGAPORE: The Infocomm Media Development Authority (IMDA) has suspended its assessment of telco Simba’s proposed acquisition of M1 after uncovering a potential regulatory breach during its review process.
In a media release on Monday (May 18), the regulator said it would suspend its evaluation of the deal “until further notice”, citing an ongoing investigation into whether Simba had been using radio frequency bands that were not assigned to it 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 the IMDA, adding that it is investigating the matter and will take the appropriate enforcement actions if needed.
“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.”
Keppel share price fell by about 2 per cent in early morning trade on Monday, before falling further to nearly 3 per cent. Shares of Australia’s Tuas, which owns Simba, fell 60 per cent to A$2.46 (S$2.25) as at 12.45am GMT (8.45am, Singapore time).
Keppel announced its intention last August to sell its subsidiary M1 to Simba for S$1.43 billion (US$1.11 billion). M1 and Simba then filed the application in September, with IMDA issuing a consultation paper the following month.
