Konnectivity said on Wednesday it would compulsorily acquire all the M1 shares from holders who haven’t accepted its S$2.06 a share takeover bid and then delist the Singapore telco.
As of the close of business on Wednesday, Konnectivity owned, controlled or had agreed to acquire 92.20 percent of M1’s shares and 84.20 percent of its options, it said in a filing to SGX.
Because M1’s free float will be below the 10 percent requirement, Konnectivity intends to exercise its right to acquire the remaining shares at the offer price.
It added that dissenting shareholders can still accept the offer through the closing date of 18 March.
“The offer therefore remains an opportunity for shareholders to realize their shares at the offer price as soon as practicable, instead of waiting until the offeror exercises its right of compulsory acquisition,” the filing said.
Konnectivity, which is a special purpose vehicle set up by M1 shareholders Singapore Press Holdings and Keppel Corp., made a S$2.06 a share voluntary conditional general offer for the Singapore telco last year.
The bid for M1 aimed to gain control of at least 50 percent of the telco to more easily engage in a “transformational” restructuring, which would likely include lower dividends, Konnectivity has previously said.
Loh Chin Hua, CEO of Keppel Corp., said in February that his company was pleased Keppel and SPH would be able to steer M1 during a “critical period.”
“The increasingly challenging and competitive market conditions in the Singapore telecommunications sector requires M1 to take bold steps to transform,” Loh said