On Aug 11, Keppel announced it is selling the telco business of M1 for an enterprise value of $1.43 billion. For its effective stake of 83.9%, it will receive cash of some $985 million. Cuscaden Peak, jointly held by Mapletree Investments and CLA Real Estate, holds the remaining stake.
After several years of at times incessant questioning by the investment community, Keppel has finally announced the sale of its controlling stake in M1. Back in 1994, Keppel helped make local telco history by co-founding M1, breaking incumbent Singtel’s monopoly.
While Keppel will be booking a one-time charge of $222 million for the sale, the market's reaction has been positive, as investors see Keppel now having more flexibility to either reduce debt, invest in newer growth areas, or, pay out special dividends and to further support its cheery share price that has already gained more than a fifth year to date.
