Singapore’s Infocomm Media Development Authority said on Monday it has suspended its review of a merger between telecom companies Simba Telecom and Keppel’s M1.
The regulator said in a statement that during the review it learnt that Simba could have been using radio frequency bands that it had not been assigned to provide mobile services.
It said the merger could not proceed until its investigation into the radio frequency band use is concluded.
Simba said in a bourse filing that it is fully cooperating with the regulator and is “reviewing the circumstances concerning the alleged unauthorised use of spectrum”.
Shares of Australia’s Tuas, which owns Simba, fell 60% to A$2.46 as at 0045 GMT.
Last August, Keppel said it would sell its 83.9% stake in M1 to Simba Telecom while retaining the non-telecoms operations of its unit in a deal that will give the asset manager net cash of S$1 billion ($780 million).
On Monday, Keppel said in a bourse filing it had removed the proposed divestment from its monetisation plan for 2025. It said it had a plan in case it retained majority ownership of M1 through the regulatory process that it would now execute, and would put in place a 90-day plan to improve M1’s efficiency.
“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,” the company said.
In March, the companies had agreed to extend the long-stop date for the proposed deal to May 21.
Source: Reuters.com