By P.R. Venkat

Singapore's telecom regulator has suspended its review of Tuas's planned acquisition of M1 Ltd. in a deal that valued the Singapore telecom operator at more than US$1.1 billion.

The Infocomm Media Development Authority made the move after learning that a unit of the Australian company, Simba Telecom, may have used unauthorized radio frequency bands, potentially breaching Singapore's Telecommunications Act and the conditions of its operating licence, Tuas said Monday.

"Simba is fully co-operating with the IMDA. The noard of Tuas will also be reviewing the circumstances concerning the alleged unauthorised use of spectrum," it said.

Tuas shares fell 65% during morning trade, making it the worst performer on Australia's S&P/ASX 200 index.

Last August, Keppel Ltd. said it had agreed to sell its entire 83.9% stake in M1 to a unit of Tuas as part of plans to exit non-core businesses.

In a separate statement on Monday, Keppel said it would begin executing its "Plan B" for M1 while awaiting the outcome of the regulator's review.

The Singaporean company added that in response to the challenges facing the local telecom industry, it would focus on improving M1's earnings before interest, tax, depreciation and amortization through cost controls and right-sizing.

"Even as we undertake the efficiency drive at M1, we believe that the telecommunication industry in Singapore is in need of and will benefit from consolidation and Keppel remains open to opportunities for divestment," it said.

Keppel reiterated its target to monetize 2.0 billion to 3.0 billion Singapore dollars, equivalent to US$1.56 billion to US$2.34 billion, of non-core assets in 2026.

Shares of Keppel were last down 1.8% in Singapore.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

May 17, 2026 21:08 ET (01:08 GMT)

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