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Taking clue from recent meltdown in Telstra share prices because of new telco operator in Australia, Singtel also controls Optus-Virgin Mobile in Australia and also faces a new operator in Singapore and potentially China Mobile. The margins in Australia and Singapore might not be sustainable.
i get the picture .....
MarcPh ( Date: 24-Apr-2017 15:25) Posted:
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The first article mentioned " Japanese tech companies" , so maybe not telco. China Mobile will be the one that Singtel dreads.
Japanese firm jumping into the foray ?
MarcPh ( Date: 24-Apr-2017 14:40) Posted:
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Good point.
M1 will be enjoying better valuations due to the potential sale and indirectly Starhub, which is > 50% owned by Singapore Technologies Telemedia, NTT Docomo (about 10%), Blackrock (a few %).
Singtel will not likely be sold so they can' t benefit from the M& A valuation upgrades.
Just an assumption, if China Mobile were to lose out on M1, there' s till Starhub to think about and consider .....
Hopefully, Starhub will benefit from any acquisition competition (if any) .....
According to the first article in this thread, Japanese companies are also interested in M1.
Taking clue from Telstra' s recent shares meltdown because of a new telco operator in Australia, Singtel will be very concerned if China Mobile controls over 61% of M1 - a rival in mobile and internet business. Unlike PEs, China Mobile will be a business owner who will bring synergies and strengthen M1' s business. China Mobile is also a prefered network partner of both M1 and Singtel in roaming services.
If Competition Commission of Singapore approves, Singtel should consider joining the bid.
China Mobile shares fall amid talk of Singapore acquisition
http://asia.nikkei.com/Markets/Equities/China-Mobile-shares-fall-amid-talk-of-Singapore-acquisition
China Mobile is among a number of potential buyers seeking to acquire a combines 61% stake of Singapore based mobile services provider M1 Ltd, which is worth US$1.36 billion, from the company' s three largest shareholders.
If completed, it will be China Mobile' s largest overseas acquisition deal to date.
M1' s three largest shareholders, Axiata Group Berhad, Keppel Telecommunications & Transportation Ltd. and Singapore Press Holdings Ltd, which holds 28%, 19% and 13% stake respectively, announced last month that they were undertaking a strategic review in terms of their respective shareholdings in M1.
https://www.chinamoneynetwork.com/2017/04/24/china-mobile-seeks-to-acquire-61-stake-of-singaporean-telecom-firm-m1