KUALA LUMPUR: Shares of Singapore-listed telco M1 Ltd hit a low of S$1.915 in Wednesday trade, after its largest shareholders dropped their plans to sell Singapore’s smallest mobile-phone carrier.
The tumble of 8.1% from the previous close of S$2.10 was the most in almost nine years, according to a wire report.
At midday, M1 was down 15.5 cents to S$1.945.The 52-week high was on Aug 4, 2016 at S$2.82 and 52-week low was Nov 21, 2016 when it skidded to a low of S$1.90.
On Tuesday, Axiata Group Bhd
, Singapore Press Holdings and Keppel Telecommunications & Transportation – which own a combined 60% stake – announced they would not proceed with the strategic review of their stakes in M1.
Axiata, which has a 28.5% stake in M1 and accounts for 3% of group sum-of-parts, said that the proposals from interested parties have not met the minimum criteria and parameters determined by the majority shareholders.
AmInvestment Research is neutral on the decision by Axiata and the other two major shareholders' plan to cancel the sale of M1.
The research house is maintaining its Buy call on Axiata with unchanged forecasts and sum-of-parts-based fair value of RM6.30 a share.
It said on Wednesday this was based on expectations of a value-enhancing re-merger with Telekom Malaysia which could reduce the valuation differential with its peers.