3 Bks Arranging Loans For Possible Singapore M1 Takeover
Updated: Thursday, May 24, 2001 12:20 AM ET
HONG KONG (Dow Jones)--Citigroup Inc. (C, news, msgs), Barclays PLC (BCS, news, msgs) and UBS AG (Z.UBS, news, msgs) are arranging financing for a potential takeover of Singapore's MobileOne Asia Pte. Ltd. by Regional Wireless Co., sources at arranging banks confirmed Thursday.
Regional Wireless is an Asian mobile venture 60% owned by Australia's Telstra Corp. (TLS, news, msgs) and 40% by Pacific Century CyberWorks Ltd. (H.PCW, news, msgs). It houses the mobile assets of Hong Kong Telecom.
MobileOne is Singapore's second largest mobile phone operator with about 800,000 paid subscribers, and its shareholders have put it up for sale.
Regional Wireless had earlier declined comment, but PCCW Deputy Chairman Alex Arena said last week that Regional Wireless is looking at the possibility of bidding for M1.
"Regional Wireless company will not comment on potential acquisitions," said spokeswoman Catherine Payne.
A possible acquisition of M1 by Regional Wireless will pit two of Asia Pacific's dominant telecos against Singapore Telecommunications Ltd. (P.SGT, news, msgs), the island's dominant teleco with strong regional aspirations of its own.
PCCW already has a stake in M1, through a joint venture with Britain's Cable & Wireless PLC (CWP, news, msgs). Other M1 shareholders include Singapore Press Holdings Ltd. (P.SPH, news, msgs) and Keppel Telecommunications & Transportation Ltd. (P.KTL, news, msgs).
M1, a profitable mobile operator which broke SingTel's monopoly in Singapore, is seen as a key asset by telecos with regional aspirations. It also holds a third-generation mobile service license.
Newspapers have speculated Vodafone Group PLC (VOD, news, msgs), the world's largest mobile phone operator may also be interested in M1. Maxis Communications Bhd., Malaysia's largest mobile phone operator, is also considered a possible bidder.
Though valuations vary, some analysts have in the past valued M1 at around S$3 billion.
-By Mia Trinephi and Hasan Jafri, Dow Jones Newswires; 65/421-4828; hasan.jafri@dowjones.com
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