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 (%)
Source: Bloomberg

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