Australia's Tuas terminates S$1.43 billion M1 acquisition after IMDA halts regulatory review

SINGAPORE: Tuas Limited has terminated Simba Telecom’s proposed acquisition of M1 after regulatory approval conditions were not fulfilled before the extended deadline of 21 May 2026.

The Australian-listed telecommunications company announced on Friday (22 May) that the Sale and Purchase Agreement between Simba Telecom and Keppel Konnect, alongside Konnectivity, had ceased to have effect.

The agreement, originally announced on 11 August 2025, involved Simba’s proposed purchase of shares in M1 Limited in a deal valued at S$1.43 billion.

Regulatory approval condition unmet

Tuas said the termination followed the failure to secure relevant approvals from the Infocomm Media Development Authority (IMDA) before the long-stop date.

“The SPA has terminated and ceased to have effect as between the parties,” Keppel said in a separate statement issued on 22 May.

Keppel added that the termination was not expected to have any immediate material financial impact on the company.

The long-stop date for the transaction had previously been extended from its original timeline to 21 May 2026.

The proposed acquisition would have represented Singapore’s first telecommunications sector consolidation.

IMDA investigation halted review

The collapse of the transaction followed IMDA’s decision on 18 May to suspend its evaluation of the proposed consolidation “until further notice”.

The regulator said investigations were continuing into whether Simba had used radio frequency bands that were not assigned to it to provide mobile services.

IMDA said such conduct could amount to unauthorised spectrum use under the Telecommunications Act 1999 and could breach the conditions attached to Simba’s Facilities-Based Operations Licence.

“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,” IMDA said.

The authority added that enforcement action could follow if investigations confirmed the alleged breaches.

“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,” it said.

Potential penalties and market impact

Tuas said Simba continued to cooperate with IMDA’s investigation and would continue operating in Singapore’s telecommunications market.

The company also said it would keep shareholders informed of developments linked to the investigation.

Under Singapore’s Telecommunications Act, IMDA can impose a financial penalty of S$1 million (US$780,700) or up to 10 per cent of a licensee’s annual turnover, whichever is higher, for breaches.

The proposed acquisition had been subject to regulatory approval under Singapore’s Telecom and Media Competition Code.

The framework requires regulators to assess whether mergers could substantially reduce competition or raise wider public interest concerns.

IMDA also noted that M1 operates extensive mobile and broadband infrastructure across Singapore, requiring a “detailed and thorough” review process amid growing cybersecurity concerns and rising reliance on digital connectivity.

Industry consolidation questions remain

The collapse of the M1 transaction comes as questions remain over future consolidation opportunities within Singapore’s telecommunications sector.

Speaking on Thursday, Singtel Group chief executive Yuen Kuan Moon said the company was seeking clarification from regulators on whether it could participate in future consolidation moves.

“If we are able to participate in the consolidation, we will definitely evaluate where are the opportunities and how we would help lift the industry altogether in Singapore,” Yuen said.

The proposed acquisition was first announced in August last year when Keppel disclosed plans to divest M1 to Simba as part of its portfolio restructuring strategy.