Tuas launches equity raise to help fund $1.4b takeover of Singaporean telco M1
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More news: TPG Telecom spin-off Tuas has launched an equity raise to help fund its acquisition of Singaporean telecommunications company M1 from the asset manager Keppel Corporation.
Through its subsidiary Simba Telecom, the operator of telecommunication assets in Singapore, Tuas has entered a binding share purchase agreement with Keppel Konnect and Konnectivity to acquire 100% of M1 Limited for an enterprise value of S$1.43 billion ($1.71 billion) on debt-free and cash-free basis.
Tuas is looking to raise at least $416 million through a non-underwritten institutional placement and share purchase plan. The floor price of the offer will be $5.24 per share, a 4.9% discount on the close price on 8 August.
Of the targeted equity raise value, the share purchase plan is expected to raise $50 million at the lower between the placement price and a 2% discount to the five-day volume-weighted average price up to the closing date of the SPP.
The company will also seek S$1,100 million of fully underwritten acquisition bank debt financing.
Following the acquisition, Tuas expects pro-forma debt to the last-12-months EBITDA leverage ratio to be about four times. However, the company expects the pro-forma group will “rapidly de-lever as synergies are realised and through continued operational discipline”.
The deal is expected to be completed in the next few months subject to approval from Singapore's Infocomm Media Development Authority.
Tuas enters trading halt as it looks to acquire Singaporean telco M1
The news: TPG Telecom spin-off Tuas has entered a trading halt this morning, after confirming that it is undertaking a capital raise to fund the acquisition of Singaporean telco M1.
The context: Tuas, which operates the Simba Telecom network in Singapore, requested that the trading halt remain in place until the earlier of an announcement about the outcome of its capital raise, and the start of trading on Wednesday.
