Simba aims for Singtel with M1 acquisition

• Singapore’s fourth-largest mobile operator, Simba Telecom, has agreed to acquire M1
• The acquisition would result in the consolidation of Singapore’s third- and fourth-largest mobile operators
• The combined company would have more than 3.2 million mobile customers, making it the island state’s second-largest mobile service provider after Singtel

Simba Telecom, Singapore’s fourth-largest mobile operator, has struck a deal to acquire the island state’s third-largest service provider, M1, in a move that would create a much stronger rival to Singapore’s current telecom sector leaders, Singtel and StarHub. 

Tuas Ltd, the Australia-listed company that owns Simba Telecom, is to acquire the 83.9% stake in M1 currently owned by global asset manager Keppel for about 1bn Singapore dollars (US$778m), a deal that values M1 at S$1.43bn (US$1.1bn). Keppel is retaining ownership of M1’s technology services operation and other assets, including datacentre facilities and subsea cables. 

M1 has about 2.09 million mobile and 223,000 fixed broadband customers. For the 12 months ending April 2025, M1’s telecom operations generated revenues of S$806.1m (US$627m) and earnings before interest, taxes, depreciation and amortisation (EBITDA) of S$195.4m (US$152m). 

Simba Telecom, which was founded in 2016 and previously known as TPG Singapore, has 1.16 million mobile customers and only about 14,400 fixed broadband customers. It has been growing its mobile customer base quickly in recent years, having doubled its subscriber numbers in the past two-and-a-half years. In the first half of this year, it generated revenues of S$73.2m (US$57m) and EBITDA of S$33m (US$26m). 

According to a Tuas investor presentation, the combined operations have generated revenues of S$948.8m (US$739m) and EBITDA of S$256m (US$199m) in the past 12 months. 

The combined operations would, based on current numbers, have almost 3.25 million mobile and almost 240,000 fixed broadband customers. The takeover provides Simba Telecom with “a transformational opportunity to strengthen [its] market position in Singapore. The acquisition will expand Simba’s mobile position, accelerate the expansion into broadband and provide an established enterprise platform,” noted Tuas in its presentation.

It would also give Simba Telecom a much denser network (outdoors and indoors), increased operational efficiencies and enhanced spectrum licence holdings, as well as making it a much greater competitive threat to the market’s more established telcos.

Singapore’s leading telco, Singtel, has some 4.54 million mobile and 691,000 fixed broadband customers and annual revenues of about S$3.8bn (US$3bn), while StarHub has about 2.38 million mobile and 577,000 fixed broadband customers and annual revenues of just over S$2bn (US$1.56bn). 

According to Tuas, a combined Simba Telecom/M1 would have a 38.3% share of the postpaid mobile subscriber market, just behind Singtel’s 38.9% and ahead of StarHub’s 22.8%. Its prepaid mobile user market share would be 15%, compared with Singtel’s 62.8% and StarHub’s 22.2%. In terms of fixed broadband, the combined company would have a market share of 15.9% compared with Singtel’s 45.8% and StarHub’s 38.4%.

The deal to combine Simba Telecom and M1 will require approval from Singapore’s Infocomm Media Development Authority (IMDA), a statutory board under the Singapore Ministry of Digital Development and Information (MDDI), but Tuas is clearly confident of a green light from the regulator as it “hopes” to complete the deal in the next few months. If approved, Simba Telecom will become the second-largest mobile operator in Singapore by customer numbers, edging StarHub into third place.    

Tuas executive chairman David Teoh noted in this announcement to investors: “Since entering the Singapore market, Simba has enhanced competition and delivered exceptional value to consumers. The acquisition of M1 represents an exciting new chapter in our growth journey. It will strengthen our market position and enable us to deliver an even more robust network, unlocking the full potential of 5G mobile and 10 Gbit/s broadband for consumers.”

Keppel noted in its announcement, that “the proposed landmark transaction is expected to benefit Singapore’s telecommunications sector and consumers through market consolidation and harnessing synergies between two of the nation’s agile and digitally driven telcos with strong track records for innovation. It brings together M1’s digitally transformed, cloud-native network with its ability to deliver hyper-personalised services through an advanced tech stack, and Simba’s innovative digital consumer model. Together, they could pool resources for more synergies on network and infrastructure, creating a nimble and competitive digital-first telco to power Singapore’s digital economy.” 

- Ray Le Maistre, Editorial Director, TelecomTV