KUALA LUMPUR: Axiata Group Bhd said it would review all options available in its response to speculation over whether it would accept a purchase offer for its 28.7% stake in M1 Ltd.
The offer to acquire Axiata's stake in M1 by Keppel Corp Ltd and Singapore Press Holdings Ltd should reflect the acurate future value of the company while inclusive of an acceptable control premium, said Axiata in a statement.
"The above shall be the primary bases for Axiata to review the Offer together with other considerations, including but not limited to, comparable premium on precedent transactions within the Asean market, M1’s historical trading trend whereby the price has been depressed for more than a year vis a vis its true value potential, long-term growth potential, and future competitive outlook."
The statement came following the announcement of a pre-conditional voluntary general offer of S$2.06 (RM6.25) per share by Konnectivity Pte Ltd, which is a joint venture between Keppel and SPH, for the remaining M1 shares they do not own.
The offer values Singapore's third largest mobile operator at S$1.9bil.
Speculation has been rife over whether Axiata's equity interest in M1 was an acquisition target since Monday when the potential purchasers requested the Singapore stock exchange to suspend trading of their shares pending an announcement regarding potential transactions in M1.
In light of the announcement, trading in Axiata shares was halted from 2.30pm to 3.30pm. The counter last traded down 10 sen or 2.1% to RM4.65 on the back of 975,200 shares done.
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