Shares of Keppel Limited opened 18 cents lower at $8.98 from $9.16 on Oct 13 after the group’s indirect subsidiary, M1, had been served with an originating application by Liberty Wireless in the High Court of Singapore.
According to Keppel’s filing on Oct 13, Liberty Wireless is alleging that M1 has wrongfully refused to enter into “good faith negotiations” to amend or vary the contract signed in 2019 in relation to the framework for the wholesale of mobile services issued by the Infocomm Media Development Authority (IMDA) in January 2020. The contract was signed between M1 and Liberty Wireless on May 22, 2019 in respect of Liberty Wireless’ mobile virtual network arrangements with M1.
As such, Liberty Wireless is now seeking a declaration that M1 is obliged to enter into such negotiations and it should take place within 14 days.
In its claim, Liberty Wireless is also alleging that the May 2019 contract may contain an error and/or mistake and that it will, if necessary, seek to rectify the contract to “reflect its rights to seek the foregoing reliefs”.
In response, M1 says it has instructed counsel and does not find the allegations meritorious. It also intends to “vigorously defend its position” at the appropriate forum.
The proposed acquisition of M1 by Simba Telecom, announced on Aug 11, is also unlikely to be adversely affected by the outcome of the legal proceedings, says Keppel.
As at 10.47am, shares in Keppel are trading 4 cents lower or 0.44% down at $9.12.
