18 March 2017

Potential sale of M1

M1 biggest key shareholders Malaysian telecom firm Axiata Group (28.54%), Keppel Telecommunications & Transportation (19.23%) and Singapore Press Holdings (13.38%) announced on 17 March that they are evaluating selling their combined stakes worth more than $1.14 billion. This triggered a sharp spike in M1 trading yesterday to a high at $2.19 per share, representing 7.88% increase before trading halt at 4:30pm.

M1 is the smallest telco among the 3 in Singapore. With the announcement of the 4th telco last year, share price of M1 had been dropping madly from a high of $4 to $2. I had been monitoring the situation since last year and decided to add more positions into M1. It was deeply undervalued and with a decent dividend of at least 6%, I am more than gladful to buy and wait for it to reach its fair value. As M1 is my biggest holding currently, I am looking forward to hear more good news and hopefully the sales will go through.

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