SINGAPORE: Tuas Limited (ASX: TUA), through its subsidiary Simba Telecom, announced Monday it will acquire M1 Limited (excluding its ICT businesses) for S$1.43 billion, aiming to create a stronger, more competitive telecommunications player in Singapore.
The acquisition, subject to regulatory approval by the Infocomm Media Development Authority, will be funded through existing cash reserves, a fully underwritten S$1.1 billion bank debt facility, and a minimum A$416 million equity raise via institutional placement and a Share Purchase Plan.
M1, a digital network operator, reported S$806.1 million in revenue and S$195.4 million in EBITDA for the 12 months ending April 30, 2025. The deal implies a 7.3x EBITDA multiple, excluding synergies.
Tuas Executive Chairman David Teoh said the acquisition marks a pivotal step in Simba’s growth journey. “It will strengthen our market position and enable us to deliver an even more robust network, unlocking the full potential of 5G mobile and 10Gbps broadband for consumers, SMEs, and enterprises alike,” Teoh said.
The merger is expected to generate significant operational synergies and enhance service quality, network resilience, and innovation. Tuas anticipates the transaction will be earnings-per-share accretive from year one and will support long-term growth and shareholder value.
Tuas is also on track to meet its FY25 outlook and will release full-year financial results on Sept. 24.