SINGAPORE - Telecom firm M1's shares fell nearly 9 per cent when trading opened on Wednesday (July 19) after the company's biggest shareholders called off strategic review of their stakes.
The stock sank as much as 8.8 per cent to $1.915, its lowest in more than six months after the opening bell. At 9.20am, it was trading at $1.94, down 7.6 per cent.
Malaysian telco Axiata Group Bhd, Keppel Telecommunications & Transportation (Keppel T&T) and Singapore Press Holdings (SPH) - who collectively hold a 60 per cent stake in M1 - said on Tuesday they had decided not to proceed further with the strategic review after considering proposals from interested parties. The three respectively have 29 per cent, 19 per cent and 13 per cent stakes in M1.
Despite a favourable level of interest, none of the parties were able to meet the minimum criteria and parameters determined by the majority shareholders for any actions to proceed.
In March, the three companies jointly appointed Morgan Stanley Asia (Singapore) as a financial adviser to assist with a strategic review of their stakes in M1.