SPH has undertaken to roll-over its existing 13.45% stake in M1 into the Offeror, and is envisaged to invest up to approximately S$51.3 million in cash in the Offeror to partially fund the Offer. Upon the close of the Offer, SPH’s effective stake in M1 may increase up to 16.13%.
The Offer is for all outstanding M1 shares, other than those M1 shares already owned, controlled or agreed to be acquired by the Offeror, its related corporations and their respective nominees, at the offer price of S$2.06 per share in cash.
and the Offerer is “Konnectivity Pte. Ltd”, a special purpose vehicle majority held by Keppel Corporation while SPH held the remaining stakes.
As at the Pre-Conditional Offer Announcement Date, SPH holds 124,453,000 M1 Shares via its wholly-owned subsidiary “SPH Multimedia Private Limited”. (link)
SPH's Stake In M1
No Of M1 Shares Owned By SPH
Market Value By Share Price On 24-Sep
$1.63 Per Share
Market Value By Offer Price
$2.06 Per Share
So SPH is re-investing the $50mil+ valuation gain back to the Offeror and help to partially fund the Offer. 👍🏻👍🏻👍🏻
Outcome of this transaction:
🎉🎉🎉 SPH increases its stake in M1 without impacting its balance sheet.
Good deal yeah!?
Note: SGX Observer is not an accountant. The above interpretation is just from the point of view of a layman trying to act clever.