MobileOne Keppel mum on proposed acquisition
2001-06-09
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OFFICIALS of MobileOne (Asia) Pte Ltd (M1) and Keppel Telecommunications
are keeping mum over the proposed acquisition of Singapore's second
cellular mobile company and will leave it to M1's shareholders to
announce.
M1 shareholders comprise Keppel Telecommunications, with a 35 per cent
stake, Singapore Press Holdings 35 per cent and the balance 30 per cent to
a joint venture between Cable & Wireless and Hong Kong's Pacific Century
CyberWorks (PCCW) called Great Eastern Telecommunications.
Wendy Poon of Keppel Telecommunications said any decision made over the
acquisition of M1 will be announced by its shareholders.
"At this point of time, there has yet to be any decision. Thus, the
company is not ready to comment on the matter," she told Business Times
when asked to confirm the reports and whether Maxis Communications had
submitted its proposal for the acquisition.
M1 assistant general manager corporate communication Chua Sweet Kiat
also declined to comment on the proposed acquisition as it involved the
company's shareholders.
Maxis Communications' officials, when contacted by Business Times also
declined to commit themselves to comment on the company's proposed
acquisition of M1.
While the deadline for submission of the proposals ended on May 28, some
other interested investors were said to have requested for more time.
Vodafone chief executive Chris Gent, was quoted as saying on May 30 that
at a results briefing, the group would focus on the main Asian markets of
Japan and China, and not chase acquisition opportunities in smaller
markets such as Singapore. "We are not bidding," he had.
Reuters reported:
The sale of M1 has reached an impasse as shareholders face bids which
are not up to their expectations, sources close to the deal said
yesterday.
"It is all a question of price. If it is not good enough, there will be
no sale. There is no pressure on the shareholders to sell," a source
familiar with the sale said.
M1 has been put up for sale by tender with an unofficial floor price of
US$1.2 billion (US$! = RM3.80) by partners Singapore Press Holdings,
Keppel Telecommunications & Transportation, Cable & Wireless Plc and
Pacific Century CyberWorks (PCCW).
Telecommunications insiders noted that M1, which has a subscriber base
of 881,000, is profitable and would be able to fund its own expansion.
Sources said the Maxis' bid, which was slightly higher, might face
problems in getting through the Singapore regulator.
The bid from the camp led by PCCW, did not meet the sale price.
"Let's just say the bid from PCCW camp was not as strong," said one
source.
Industry sources speculate that M1 shareholders might have to reconsider
their options for an exit route if the current tender is aborted.
"They could go for an initial public offering (IPO) as an exit for the
shareholders. The company was quite advanced in its preparation for an IPO
last year," said a senior executive with an Asian telco.
But the source close to deal said an IPO was not currently being
discussed by the M1 shareholders, who had abandoned that idea due to stock
market sentiment.
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