Tuas shares drop after acquisition target M1 hit by lawsuit
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The news: Shares in Singapore-focused telco Tuas fell after its takeover target M1 was hit with legal proceedings brought by Liberty Wireless, who is in the midst of acquiring mobile virtual network operator (MVNO) services from M1.
The numbers: At 2:19pm AEDT, shares in Tuas had slipped 3.7% to $6.74.
The context: Legal proceedings against M1 commenced in the High Court of Singapore on 11 October in relation to a MVNO services contract signed in May 2019.
Liberty Wireless, which owns MVNO ‘Circles.Life’, is seeking orders to “obligate M1 to enter into good faith negotiations with Liberty Wireless to amend or vary the MNVO Contract”, after M1 initially reduced to, within 14 days.
Liberty argues it is entitled to such orders under the Infocomm Media Development Authority of Singapore’s framework for the wholesale of mobiles services issued in January 2020.
M1’s current parent company Keppel said it will “vigorously defence” the proceedings. Tuas subsidiary Simba Telecom signed a binding share purchase agreement to fully acquire M1 in August.
The source: ASX
