M1-Simba deal collapses after regulatory probe stalls review

Singapore’s proposed telco consolidation between M1 and Simba Telecom has officially fallen through, after the parties terminated the sale and purchase agreement tied to the deal.

In a statement released on 22 May, Tuas Limited said the agreement relating to Simba’s proposed acquisition of shares in M1 had been terminated after several conditions precedent were not met before the long-stop date of 21 May 2026.

The agreement, first announced in August 2025, was between Tuas and its subsidiary Simba Telecom, and Keppel entities Keppel Konnect and Konnectivity.

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According to Tuas, the agreement ceased to have effect after the conditions were not fulfilled or waived by the extended deadline. The parties have also been released from their respective obligations under the deal, except for certain surviving clauses.

Tuas added that Simba continues to cooperate with an ongoing investigation by the Infocomm Media Development Authority (IMDA) into potential breaches of the Telecommunications Act and the conditions of Simba’s Facilities-Based Operator Licence.

The company said it will continue to update shareholders in relation to the investigation.

The collapse of the deal comes after IMDA suspended its review of the proposed consolidation following concerns that Simba may have used radio frequency bands that were not assigned to it.

At the time, the regulator said the alleged unauthorised use of spectrum could constitute a breach of the Telecommunications Act 1999 and Simba’s licence conditions, adding that investigations and possible enforcement action were ongoing.

IMDA had also been assessing whether the proposed merger would substantially lessen competition or raise public interest concerns under Singapore’s Telecom and Media Competition Code.

The proposed acquisition was first unveiled in August last year, when Keppel announced plans to divest M1’s telco business to Simba in an all-cash transaction valued at an enterprise value of SG$1.43 billion.

Under the proposed deal, Keppel was set to receive close to SG$1 billion in cash proceeds for its 83.9% effective stake in M1, while retaining the company’s ICT business. At the time, Keppel said the merger would create a “nimble and competitive digital-first telco” by combining M1’s cloud-native network with Simba’s digital consumer model.

The proposed consolidation also drew scrutiny from industry players. In November last year, Circles.Life warned that the merger could negatively impact competition and consumer choice if sufficient regulatory safeguards were not put in place.

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