StarHub management has "no intention" to acquire M1: report

THE management of StarHub has "no intention" to acquire or merge with M1, but expects its major shareholder ST Telemedia to decide, a Maybank Kim Eng Research report this week said.

The report comes after M1's major shareholders said they are conducting strategic reviews of their ownership.

"Management has no intention to acquire or merge with M1, but shareholder ST Telemedia will decide," said the brokerage report dated March 30.

ST Telemedia owns 56 per cent of StarHub. ST Telemedia is wholly owned by Temasek Holdings.

"Management believes it can achieve the same goals through collaboration. It also cautioned that the regulator will not permit spectrum hoarding even if it allows another telco to buy M1."

Maybank Kim Eng kept its "sell" rating on StarHub, citing structurally poorer margins.

Shares of StarHub were unchanged at S$2.89 at 1.25pm. Shares of M1 were likewise unchanged at S$2.14.