StarHub could buy M1 at below Simba’s bid, but funding poses challenge: analysts

[SINGAPORE] StarHub could acquire M1’s telco business for less than the S$1.43 billion enterprise value agreed with Simba in 2025, but financing the purchase could prove challenging and may require StarHub to raise equity, analysts have said.

Foo Zhiwei, analyst at Macquarie Capital, estimates the enterprise value of M1 to be at between S$1.16 billion and S$1.25 billion; Bloomberg Intelligence analyst Chris Muckensturm puts it at between S$1.1 billion and S$1.2 billion.

Muckensturm said: “We believe StarHub could secure a 16 to 22 per cent discount to Simba’s bid.”