SINGAPORE - M1 will be back on the market after its proposed acquisition by Simba Telecom stalled following a probe into alleged regulatory breaches by the telco owned by Australia-listed firm Tuas.At a briefing with media outlets and analysts on May 18, Keppel’s chief executive, Mr Loh Chin Hua, said: “We will allow the sale and purchase agreement with Simba to lapse when the long-stop date comes up later this week on May 21.”A long-stop date is the contractual deadline by which conditions, including regulatory approvals, must be satisfied or waived, or the parties involved can walk away.Keppel is the parent company and majority owner of M1.Earlier in the day, the Infocomm Media Development Authority (IMDA) said it had suspended its review of Simba Telecom’s $1.43 billion bid for M1’s telecommunications business, citing an ongoing investigation over allegations that Simba could be using certain radio frequency bands to provide mobile services without authorisation.This would constitute the unauthorised use of frequency spectrums, which is a breach of the Telecommunications Act and the conditions of Simba’s facilities-based operations licence. If found guilty, Simba could be fined up to $1 million, or up to 10 per cent of its annual turnover.“Some investors and stakeholders may be disappointed with the outcome, but Keppel respects IMDA’s decision to suspend the review,” said Mr Loh.During the call, he said that Keppel’s current focus will be on driving efficiency at M1, and strengthening it to make it more attractive for potential divestment.“Even as we undertake this efficiency drive at M1, we believe that the telecommunications industry in Singapore is in dire need of, and will benefit from, consolidation. Keppel remains open to opportunities for divestment,” he said.While Keppel continues to look for new suitors, its plans to monetise M1 will now be moved back by about one to two years, he said.Mr Loh did not rule out Simba as a future merger partner for M1, saying: “We remain open for any discussion on consolidation down the road.”The proposed Simba-M1 merger was first announced in August 2025, potentially creating a combined entity that would be big enough to challenge Singtel, the incumbent in the telco industry.Speculation had centred on StarHub instead of Simba as the likely buyer until the announcement last August.Mr Loh acknowledged that Keppel had been in serious discussions with at least two bidders before its agreement with Simba.Now that the deal is lapsing, Keppel said it will begin a 90-day plan to enhance M1’s efficiency by reducing its technology platform and network costs, using AI for automation, as well as product rationalisation.Mr Loh declined to comment on job cuts.The company already uses AI to generate advertising campaigns, which helps to reduce advertising costs significantly, said M1’s chief executive, Mr Manjot Singh Mann, during the briefing on May 18. He said such efforts will be accelerated.“A lot of our technology costs can be managed by AI automation,” said Mr Mann, who added that this includes customer relationship management tools that have been replaced with AI agents that are half the cost to use.When ST visited M1’s corporate office in Jurong at 4.30pm on May 18, employees were seen streaming out of a town hall meeting that had begun at 4pm.One employee, who declined to be named, said the staff had not been informed of any layoffs. Other employees declined to comment.Responding to queries from ST, M1 said its “right-sizing” efforts are aimed at helping the company operate more efficiently, rather than it being driven solely by manpower reductions.Mr Desmond Tan, executive secretary of the Singapore Industrial & Services Employees’ Union (SISEU), said the union has been working closely with M1 and will continue to engage with the company to support members and workers.M1 is a unionised company under SISEU, which is affiliated with the National Trades Union Congress.The telco did not respond to ST’s queries on its current workforce size. Around 1,100 employees work in its Singapore office, according to its LinkedIn page.M1 and its nine subsidiaries employed 1,659 people in Singapore and Malaysia, according to the telco’s 2023 sustainability report, the latest one available.M1 has around 2.29 million mobile subscribers.Additional reporting by Vihanya Rakshika, Sharon Salim, and Letitia Chen