This is not expected to affect or delay the completion of the proposed sale of M1’s telco business to Simba Telecom
[SINGAPORE] M1, an indirect subsidiary of Keppel, is facing legal proceedings in relation to a contract it entered into with Liberty Wireless in May 2019.
The proceedings relate to mobile virtual network arrangements between Liberty Wireless and M1 under the contract, Keppel said in a bourse filing on Monday (Oct 13).
The asset manager said that the outcome of the proceedings is not expected to affect or delay the completion of its proposed sale of M1’s telco business to mobile network operator Simba Telecom, announced on Aug 11.
Liberty Wireless alleges that M1 wrongfully refused to enter into good faith negotiations to amend the contract “to the extent reasonably necessary or appropriate” to address the implications of the framework for the wholesale of mobile services the Infocomm Media Development Authority issued in January 2020.
It is seeking a declaration that M1 is obliged to enter into such negotiations, and an order that the Keppel subsidiary enter into such negotiations with it within 14 days.
Moreover, Liberty Wireless alleges that the 2019 contract may contain an error or mistake and said that it intends to rectify it so as to “reflect its rights to seek the foregoing reliefs”.
“M1 has instructed counsel and does not find the allegations meritorious, and intends to vigorously defend its position at the appropriate forum,” Keppel said.
Keppel shares ended Friday 0.1 per cent or S$0.01 down at S$9.16.
