Decent offer for M1 minority shareholders but will Axiata bite?

SINGAPORE (Sept 28): RHB Research and CGS-CIMB Securities say Keppel Corp and M1's $2.06 per share valuation of M1 is fair.

To be sure, M1’s share price has de-rated by a significant 30% on worries over escalating threats posed by new players in the market over the past 18 months.

The offer price values M1 at $1.92 billion, 23% above RHB's previous DCF-derived target price of $1.68. On the other hand, CGS-CIMB says shareholders should accept the offer as it is at a "26% premium to the last traded price and 29% premium to the three-month volume weighted average price (VWAP)".

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