StarHub has no plans to buy M1
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Despite speculation, Singapore operator StarHub has no intention of acquiring or merging with struggling rival M1, according to reports.
StarHub’s management does not plan to acquire M1, Singapore’s smallest major operator whose major shareholders recently revealed are conducting strategic reviews of their ownership.
But the research report noted that it will be up to StarHub’s majority owner ST Telemedia to decide whether to pursue a purchase or merger.
ST Telemedia owns 56% of StarHub, and is itself wholly owned by Singapore state investment company Temasek Holdings.
But even if ST Telemedia is interested in a deal, the report notes that Singapore’s regulator is not likely to permit a deal that would result in spectrum holding even if it would allow another operator to acquire M1.
Maybank Kim Eng has maintained a sell rating for StarHub shares due to what it says are structurally poorer margins.
StarHub has separately recently announced the appointment of a new chief for its enterprise business group – former Integrated Health Information Systems CEO Chong Yoke Sin.
Questions & Answers
Q.What is StarHub's official stance on acquiring M1?
What is StarHub's official stance on acquiring M1?
StarHub's management has stated it does not plan to acquire or merge with M1. This contradicts recent speculation in the market about a potential deal with the struggling rival.
Q.Who ultimately decides if StarHub pursues an M1 acquisition?
Who ultimately decides if StarHub pursues an M1 acquisition?
Ultimately, the decision would rest with StarHub's majority owner, ST Telemedia. ST Telemedia holds 56% of StarHub and is a subsidiary of Singapore's state investment company, Temasek Holdings.
Q.What is the regulator's likely position on a potential StarHub/M1 deal?
What is the regulator's likely position on a potential StarHub/M1 deal?
The report suggests Singapore’s regulator is unlikely to approve a deal that would concentrate spectrum holdings. However, it might permit another operator to acquire M1.
Q.Why has Maybank Kim Eng given StarHub a 'sell' rating?
Why has Maybank Kim Eng given StarHub a 'sell' rating?
Maybank Kim Eng has maintained a 'sell' rating for StarHub shares. This rating is based on their assessment that StarHub is experiencing structurally poorer margins.
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