Singaporean company Keppel has today announced plans to sell M1's telecom business to Simba Telecom for an enterprise value of S$1.43 billion (US$812 million).

Keppel said the sale will help it to "sharpen" its focus on digital infrastructure instead, as the company pushes to become more "asset light."

As such, Keppel said it expects to gain close to S$1.0bn (US$780m) in cash proceeds for its 83.9 percent effective stake in M1.

Keppel will retain M1’s fast-growing ICT business, which complements Keppel’s integrated connectivity business, including data centers and subsea cables.

The company said it expects to complete the sale in the next few months.

Keppel first invested in M1 in 1994 as one of its founding investors. M1 went private in 2019.

“The proposed transaction offers a strategic path to sustainable growth for Singapore’s telco sector. M1 and Simba are a highly synergistic combination — together, they can scale more efficiently, optimize infrastructure, and accelerate 5G and digital investments, greatly enhancing service quality while contributing to a more resilient, future-ready telco industry," said Loh Chin Hua, CEO of Keppel.

“For Keppel, the divestment of M1’s telco business is the latest step in our transformation, as we simplify our business and advance our strategy and focus as a global asset manager and operator."

According to Keppel, Simba had put forward the strongest bid, which is made up of an all-cash offer.

M1 serves around two million users in Singapore, providing mobile, fiber, and fixed line services. The company is the third-largest mobile operator in Singapore, while Simba is the fourth-largest.

Simba is a wholly owned subsidiary of Australia's Tuas Ltd.

For Keppel, the sale paves the way for the company to focus on its data center strategy.

Keppel owns and operates a number of data centers across Europe and Asia via its Keppel DC REIT and Keppel Data Centres units. Its data center portfolio currently totals 35 facilities across Europe and the Asia Pacific, with 650MW of power capacity.

The company has around 200MW of capacity in Singapore, 350MW across the rest of APAC (Australia, Japan, China, and Malaysia), and 100MW in Europe (UK, Germany, Ireland, Italy, and the Netherlands). It is planning to expand its footprint further.