IMDA, which regulates the telco and media industries, says that in the course of its review of the deal, Simba is found to have used radio frequencies it was not assigned to.
IMDA has commenced an investigation to this alleged flouting of the Telecommunications Act 1999 and the conditions of Simba’s Facilities-Based Operations Licence.
IMDA says it will take the appropriate enforcement actions if it is established.
Australia-listed Tuas shares plunged by more than 60% to just above A$2.3 in response.
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Keppel shares, which closed at $10.60 last Friday, is down to $10.28 as at 9.12 am.
"Simba is fully co-operating with the IMDA. The Board of Tuas will also be reviewing the circumstances concerning the alleged unauthorised use of spectrum," says Tuas.
Following this latest announcement by IMDA, Keppel says it will activate a "Plan B" in which it continues to hold M1.
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"In response to the significant challenges facing the telecommunication industry in Singapore, our focus will be on enhancing M1’s efficiency to improve its run rate EBITDA, through rightsizing the company and reducing costs, without adversely affecting customer experience," says Keppel.
"We have a 90-day plan to drive M1’s efficiency, which we will activate with immediate effect. This would include reducing technology platform costs and network costs, using AI for automation, as well as product rationalisation. More details will be shared during Keppel’s 1H2026 results announcement.
"Even as we undertake the efficiency drive at M1, we believe that the telecommunication industry in Singapore is in need of and will benefit from consolidation and Keppel remains open to opportunities for divestment,” the company adds.
