Keppel Corporation and Singapore Press Holdings (SPH) joint venture (JV) company Konnectivity said there will be no increase in its offer price of $2.06 for M1 shares they do not already own.
It also extended the offer closing date by at least two weeks.
The JV company, which is majority owned by Keppel, said in a regulatory filing yesterday that it does not intend to increase the offer price "under any circumstances whatsoever". The offer closing date has been extended from 5.30pm on Feb 4 to Feb 18, or a later date that may be announced, it added.
Konnectivity and its concert parties effectively owned about 318 million shares, or 34.4 per cent, of M1, as at market close on Monday.
CLSA Singapore said the offer Keppel and SPH are making for M1 is "fair and reasonable and not prejudicial to the interests of shareholders as a whole".
"Accordingly, we advise the recommending directors to recommend that shareholders accept the offer, unless shareholders are able to obtain a price higher on the open market," said the independent financial adviser to the independent directors of M1.
The offer price represents a 36 per cent premium over the lowest closing price of $1.52 over the 52-week period before the last trading date prior to the offer. It is also a 25 per cent premium over equity research analysts' average target price of $1.644.
M1 shares closed down 0.97 per cent at $2.05 yesterday.