Singtel seeks clarity on participating in telco consolidation after M1-Simba fallout; weighs Reit IPO

[SINGAPORE] Singtel is “seeking clarification” from regulators on its ability to participate in the consolidation of Singapore’s telecommunications space after the proposed sale of M1 to Simba Telecom collapsed earlier this week.

“We have always been actively seeking to participate in consolidation,” said Singtel group CEO Yuen Kuan Moon on Thursday (May 21) at Singtel’s FY2026 full-year results briefing.

He noted that the group would consider participating in market consolidation, if regulators gave their approval.

His comments come after the Infocomm Media Development Authority said ​on Monday that it is investigating allegations that Simba used radio frequency bands that had not been assigned to it.

Yuen said: “Of course, if we are able to participate in the consolidation, we will definitely evaluate where the opportunities are and how we would help lift the industry altogether in Singapore.”

An environment with four telcos is “definitely not sustainable”, said Yuen. “As you can see in many other markets, especially in the region, we have seen even larger markets have consolidated.” He noted Thailand, India and Indonesia as examples.

In response to a question on how the company is handling tight competition in Singapore’s telco market, Ng Tian Chong, CEO of Singtel Singapore, noted: “Even though there’s aggression in the market, we focus a lot on differentiating ourselves through our network as well as customer experience.”

Ng cited the company’s deliberate decision to differentiate Singtel’s telco services in Singapore into three brands, which cater to different consumer segments.

The group on Thursday posted a net profit of S$2.2 billion for its second half ended Mar 31, down 20.9 per cent from S$2.8 billion in the year-ago period.

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Scuttled M1-Simba deal leaves investors with more questions than answers

This was mainly due to lower exceptional gains from its associate Airtel.

Excluding exceptional items, the group’s underlying net profit for the six months rose 10.6 per cent for H2, to S$1.4 billion from S$1.3 billion previously.

For the second half, revenue stood at S$7.4 billion, up 2.7 per cent on the year from S$7.2 billion.

Potential Reit IPO

The group is considering a potential real estate investment trust (Reit) initial public offering (IPO).

This is part of its strategy to create “permanent capital pools that (Singtel) can continuously tap for longer term investments”, noted Arthur Lang, Singtel group chief financial officer.

“This could be in the form of long term investments, as well as a listing like a Reit, where we can continue to eject assets,” the CFO added. He added that this approach “enables financial flexibility…strengthens returns and supports long-term value creation”.

Lang noted that a potential Reit IPO does not necessarily involve Singtel’s data centre assets, describing it as a possible capital-recycling option available to the group.

In response to a question on the timeline for a potential Reit IPO, the CFO said: “The Reit IPO will become a lever, but whether we execute on the lever depends on many things.”

Potential minority partner in Optus

In a separate statement on Thursday, Singtel said it is open to an Australian partner taking a minority stake in Optus, its wholly-owned Australian subsidiary.

Responding to a question on whether specific market challenges led to this decision, Yuen noted that the decision to find a local partner was “separate” from any challenges faced.

He said: “Looking for a local partner taking a minority stake in Optus is no different from our strategy and how we operate. We believe in bringing a local partner who’s like-minded.”