Analysts had said Axiata would have to accept the offer unless it was able to find a partner to fund a counterbid since M1 was a non-core asset. The 28.67% stake comprises 265.41 million shares.
KUALA LUMPUR: Axiata Group Bhd
has accepted the general offer for its 28.67% stake in Singapore's M1 Ltd which will see it netting a gain of RM126.45mil on disposal of the shares.
Analysts had said Axiata would have to accept the offer unless it was able to find a partner to fund a counterbid since M1 was a non-core asset. The 28.67% stake comprises 265.41 million shares.
Axiata said on Friday its unit Axiata Investments (Singapore) Ltd (AISL) had accepted the voluntary conditional general offer made by Keppel Corporation Ltd and Singapore Press Holdings Ltd for the stake at S$2.06 (RM6.20) a share for S$546.7mil or RM1.642bil.
As of to date, Keppel and SPH and parties acting in concert with the offeror owned 318.55 million shares or 34.41%. This was just 5.74% above Axiata's stake.
The consolidated profit after tax of M1 based on the latest audited financial statements for the financial year ended Dec 31, 2017 and unaudited consolidated financial statements for the FYE2018
announced on March 5, 2018 and Jan 28, 2019 were S$132.5mil and S$130.7mil.
Axiata said the offer price was 26% above the last traded price of S$1.63 on Sept 21, 2018 which was the last trading date prior to the announcement of the offer. It was 25% premium over the average target price per share of S$1.644 by equity research analysts covering M1 prior to the announcement of the offer.
“The cash proceeds from the proposed disposal of approximately S$546.7mil (RM1.642bil) are intended for general corporate purposes and/or repayment of existing debts,” it said.
On Thursday, CIMB Equities Research said it expected Axiata to accept Keppel and SPH's offer of S$2.06 per share for M1 unless it is able to find a partner to fund a counterbid as M1 is a non-core asset.
“If Axiata keeps its stake, there is a potential five sen downside to our sum-of-parts based target price of RM4.40 as we revert back to a DCF-based valuation for M1 (i.e. S$1.50/share),” it said.
Limited time offer:
Just RM5 per month.
