KUALA LUMPUR,. Axiata Group Bhd, the single largest shareholder in M1 Ltd, said any offer for its stake in the Singapore-listed wireless operator should reflect the accurate future value of M1, consistent with market standards.
The value should include an acceptable control premium, it said in a statement in response to a pre-conditional voluntary general offer made earlier today by Konnectivity Pte Ltd, which is jointly owned by Keppel Corporation Ltd and Singapore Press Holdings Ltd.
The offeror, which together with parties in concert has a deemed interest of 33.27 per cent in M1, intends to offer S$2.06 (RM6.25) cash for each M1 share it does not own, subject to receiving the required approvals from the Info-communications Media Development Authority of Singapore.
A Reuters report quoting a source said Axiata was likely to reject the offer, as it saw the offer as “opportunistic” and “inadequate.”
In its statement, Axiata did not say outright it would reject Konnectivity’s offer but stated its position was “clear” that the offer must reflect M1’s future value.
“Hence, it 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, long-term growth potential, and future competitive outlook,” it said.
The Malaysian telecommunications company added that it would continue to review all options available in relation to its shares in M1, “with the sole objective of vigorously protecting and enhancing shareholders’ value of both the company and M1, the latter via our board representation.”
Axiata holds 28.3 per cent equity interest in M1.
Konnectivity, targeting a majority stake in M1, gave a minimum acceptance condition that it and its concert parties must secure more than 50 per cent of M1’s issued share capital at the close of the offer. — Bernama