Not every promising business on the ASX sits inside the top 50 or receives daily media attention. Sometimes, value emerges in places where fewer eyes are looking. Tuas Ltd (ASX: TUA), the Singapore-based telecommunications provider spun out of the TPG–Vodafone merger in 2020, is one of those under-discussed names quietly growing into something far more substantial than when it first listed.
While the share price has performed well over the past 5 years, the business has little fanfare amongst the broader S&P/ASX 300 Index (ASX: XKO).
Yet beneath the surface, Tuas has been executing a clear plan: compete on value, scale efficiently, and steadily push deeper into Singapore's tightly contested telecom market.
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What Tuas actually does
Tuas operates a mobile network in Singapore under a founder-led structure, guided by David Teoh — the same entrepreneur who transformed TPG from a small reseller into a major Australian telco. That track record is important. Execution, discipline and cost control have long been hallmarks of Teoh-led businesses.
The company's Singapore offering has been simple: provide competitive mobile plans with strong network performance at attractive price points. In a market dominated by Singtel, StarHub and M1, Tuas has carved out a niche by focusing on value-driven customers and running a lean operational model.
Growth has remained solid
Across its most recent financial periods, Tuas has continued to deliver meaningful top-line growth, including a strong uplift in FY25 and its first full-year profit. Subscriber numbers have climbed consistently as Singaporean consumers respond to lower-cost "value" offerings in a market known for high mobile adoption.
For a relatively small ASX-listed telco operating in a different jurisdiction, this consistent performance places Tuas among the more intriguing growth stories in the ASX 300.
The M1 acquisition: a strategic opportunity — but far from certain
In August, Tuas announced a proposal to acquire M1, Singapore's third-largest mobile operator. On paper, joining forces with M1 would dramatically expand Tuas' scale and give it the capability to offer a full suite of mobile and broadband services. It would also bring the third- and fourth-largest Singapore operators together to compete more effectively with Singtel and StarHub.
However, new information shows the deal faces significant obstacles.
M1 is currently locked in a dispute with its biggest customer, Liberty Wireless — the company behind Circles.Life. Liberty Wireless has requested Singapore's regulator to permit renegotiation or termination of its long-term wholesale contract with M1 as a condition for approving Tuas' takeover.
This is far from a minor issue. Circles.Life may contribute 50%–60% of M1's earnings and up to 80% of net profit, meaning any change to the agreement could materially reduce M1's value.
The matter is already before the High Court of Singapore, and regulators are reviewing broader competition implications. A merged Tuas–M1 entity could control an estimated 77% of the wholesale mobile market and around 38% of the postpaid retail market, levels that will attract careful scrutiny.
What happens if the deal does proceed?
If approved — and there are meaningful "ifs" attached — Tuas would be operating at a far larger scale. The combination may allow it to offer more products, potentially improve its competitive position and spread fixed costs over a broader customer base.
There may also be opportunities to streamline overlapping operations or reduce duplicated expenses. However, with the regulator's decision pending and M1's largest customer seeking to change its commercial arrangement, it is too early to confidently predict the shape or size of any benefits.
Foolish takeaway
Tuas remains one of the more interesting businesses in the ASX 300 — a founder-led, growing company competing effectively in a sophisticated market. But its proposed acquisition of M1 now carries significant uncertainty that investors should be aware of.
For long-term investors exploring lesser-known ASX companies with potential, Tuas offers both promise and complexity. The underlying business continues to expand, yet the M1 decision could influence its next phase in a meaningful way.
