Industry Trend Analysis - M1 Share Sales Indicate Weak Position - JUNE 2017
BMI View : Its shareholders ' hasty withdrawal is indicative of M1 ' s inability to combat lower usage, competitive data pricing and t he impending arrival of TPG in Singapore ' s mobile market. M1 could benefit from a clearer strategy with a single shareholder to compete with the newcomer .
M1's largest owners - Axiata Group (29%), Keppel Telecommunications & Transportation (19%) and Singapore Press Holdings ( SPH) (13%) - disclosed in March 2017 that they were undertaking a strategic review of the company, including a possible sale. With a market value of USD1.4bn, the process has attracted bidders including Shanxi Meijin Energy, China Broadband Capital, Bahrain Telecommunications, private equity funds and, reportedly, China Mobile.
A Signal Of M1's Financial Struggle
|Capital Efficiency Is M1's Strongpoint|
|Operators' Return On Capital (%)|