Tuas shares gain as Citi says M1 takeover will accelerate path to market leadership
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The news: Singapore-focused telecommunications business Tuas has seen its shares lift after Citi analysts reiterated their 'buy' rating on Thursday evening amid optimism on its proposed $1.4 billion takeover of M1.
The numbers: By 2:52pm AEST, Tuas’ share price gained 1.9% to $7.72 and was up 21.8% over the year to date.
The context: Citi analysts expect Tuas’ proposed takeover of Singaporean telco M1 is expected to be approved by Singapore’s Infocomm Media Development Authority in the next few months.
In a research note, the analysts also said the deal will likely result in “meaningful” synergies and “should not translate to any slowdown in market share growth”. It also could accelerate Tuas’ journey from “disruptor to market leader”.
What they said: “Industry consolidation is not likely to shift TUA’s approach and we think its scale and reach with M1 under its belt could result in TUA disrupting the market more aggressively across both the value-end and premium-end as well as the enterprise market,” Citi said.
The source: Citi research
