Axiata Malaysia evaluating options on stake in M1

Axiata Group Bhd, which is evaluating its options on a possible buyout offer by two of M1 Ltd’s major shareholders Keppel Corp Ltd (KCL) and Singapore Press Holdings (SPH), is hoping for accurate future value for its 28.7% interest in M1.

News reports in Singapore cited that both companies are planning to launch a general offer for shares they do not own in M1. The deal is expected to fetch a market value of S$1.51 billion (RM4.6 billion).

KCL and SPH hold 19.3% and 13.5% stake in M1, respectively.

In a statement released today, Axiata said any transaction involving M1 stake should reflect its accurate future value as well as incorporate acceptable control premium based on market norms and precedent transactions of similar nature.

Axiata said the group is currently reviewing its position in view of a possible transaction to be further announced by KCL and SPH on its M1 shares.

“The company is already in discussion with a financial institution to act as its adviser to review various options available to Axiata with the sole objective that the company continues to vigorously protect and enhance shareholders’ value of both Axiata and M1, the latter via its board representation.”

“The financial institution will also advise the company once KCL and SPH officially announce their proposed transaction,” it added.

Axiata’s share price gained 19 sen or 4.2% to close at RM4.75 today with 3.02 million shares changing hands.