Merger of Singapore’s third- and fourth-largest mobile operators set to reshape telco competition

Keppel is divesting M1’s core telecom operations to Simba Telecom in a S$1.43 billion deal aimed at consolidating Singapore’s telco sector and accelerating digital infrastructure growth.

Details of the Deal

On August 11, Keppel announced it would sell its 83.9% stake in M1’s telecom business to Simba Telecom, valuing the operations at S$1.43 billion (US$1.11 billion). The asset manager will receive S$1 billion in net cash proceeds, while retaining M1’s information and communications technology arm, which includes data centres and subsea cables.

Strategic Impact on Singapore’s Telco Sector

Keppel CEO Loh Chin Hua described the merger as “a strategic path to sustainable growth” that will allow M1 and Simba to scale more efficiently, optimise infrastructure, and accelerate 5G rollout. Simba’s parent company, Australia-listed Tuas, called the acquisition “transformational,” citing expansion opportunities in broadband and enterprise services.

Market Share and Growth Targets

Currently, Simba holds 1.5% of Singapore’s prepaid mobile market, 14.4% of the postpaid segment, and 0.9% of the broadband market. M1 controls 13.5%, 23.9%, and 15% respectively. Post-merger, Simba aims to capture 15% prepaid, 38.3% postpaid, and 15.9% broadband market share.

Financial Performance and Proceeds Use

M1’s telecom operations generated S$806.1 million in revenue and S$195.4 million in EBITDA in the year ending April. Keppel expects an accounting loss of S$222 million from the sale but plans to use proceeds to reduce debt, fund growth projects, and potentially reward shareholders.

Regulatory and Financing Steps

The transaction is subject to approval by Singapore’s Infocomm Media Development Authority (IMDA), which will assess its impact on competition and consumers. Tuas intends to raise at least A$416 million (US$271 million) through a placement and share purchase plan to finance the acquisition.

Industry Context and Outlook

M1 and Simba, Singapore’s third- and fourth-largest mobile operators, trail Singtel and StarHub. Analysts see the deal as a potential catalyst for stronger competition against market leaders while enabling a more resilient, future-ready telecom industry in Singapore.

The Keppel-Simba deal marks a significant shift in Singapore’s telecommunications landscape, combining resources to boost market presence, strengthen infrastructure, and accelerate 5G adoption. For businesses and consumers in Singapore and the region, the merger could mean enhanced service quality and more competitive offerings in the years ahead.

Sources: CNA (2025) , Reuters (2025)

Keywords: Keppel, M1, Simba Telecom, Singapore Telco, Market Consolidation, 5G Investments