This Tuesday, S&P/ASX 300 Index (ASX: XKO) share Tuas Ltd (ASX: TUA) jumped around 30% after the Singaporean telecommunications business returned to trade following its announcement that it's acquiring M1, another Singaporean telco.
Today, the business revealed it had completed its institutional placement (capital raising) to raise A$385 million at $5.51 per share to help fund the acquisition. Tuas revealed there was "strong support" for the placement from both new and existing shareholders.
A share purchase plan (SPP) for existing Tuas shareholders is expected to open on 19 August 2025 to buy up to $30,000 of new Tuas shares.
Let's take a look at what the ASX 300 share is acquiring.
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Tuas' acquisition of M1
The ASX telco share is buying 100% of M1, excluding its information and communications technology (ICT) businesses, for an enterprise value of A$1.43 billion on a debt-free and cash-free basis.
M1 is described as a full-service telco with a diversified revenue mix. In the 12 months to 30 April 2025, M1 generated S$806 million of revenue. Tuas said that 58.9% of revenue was mobile (prepaid and postpaid), 19.3% was from handsets and equipment, 9.3% came from residential broadband, 8.1% came from enterprise, and 4.4% originated from corporate broadband.
M1 provides mobile and fixed services to over 2 million customers across Singapore.
What are the benefits of the deal?
Tuas said the M1 acquisition is a "transformational opportunity" to strengthen Simba's market position in Singapore. The acquisition will "expand Simba's mobile position, accelerate the expansion into broadband and provides an established enterprise platform."
The ASX 300 share is expecting material capital expenditure and operating expenditure synergies from the optimisation of radio network, transmission, and IT systems overlaps, including the duplication of equipment and systems.
The acquisition of 4G and 5G spectrum will help deliver higher speeds and capacity.
After the acquisition, the combined business will have a pro-forma prepaid mobile market share of 15%, a 38.3% postpaid mobile market share, and a 15.9% broadband market share.
FY25 guidance
Investors may also have pushed the Tuas share price higher because it confirmed compelling growth in its FY25 commentary.
FY25 mobile subscriber growth for Tuas is expected to be more than 200,000.
The company noted expansion of channels to win subscribers, including 7-Eleven and all the Changi Airport terminals.
The ASX 300 share is also expecting to report a further operating profit (EBITDA) margin increase and achieve a maiden full-year positive net profit.
Tuas share price snapshot
In the last 12 months, the Tuas share price has jumped by close to 70%, as the chart below shows.
