Tuas shares (ASX: TUA) are down more than 62% today, suffering their worst single-day decline on record after Singapore’s telecommunications regulator halted its review of the company’s S$1.43 billion acquisition of M1 Limited, citing allegations that Tuas’ SIMBA mobile business has been operating on radio frequency spectrum it was never authorised to use.
The Tuas share price has plummeted 62.38% to A$2.30, wiping out A$1.5 billion in market cap, in what has been a shocking day for bulls. The share price traded as low as A$1.91 during the session, with the severity of the selloff reflecting both the potential collapse of the M1 deal and material regulatory penalties that could fundamentally alter SIMBA’s operating model in Singapore.
Regulatory Bombshell
The Infocomm Media Development Authority of Singapore (IMDA) announced on Sunday that it had suspended its assessment of the proposed consolidation between M1 Limited and SIMBA Telecom “until further notice.” In its statement, IMDA revealed that during the course of its merger review, it learned that SIMBA “could have been using radio frequency bands that had not been assigned to it to provide mobile services.”
The regulator was unequivocal about the gravity of the matter, stating that such conduct “would constitute unauthorised use of frequency spectrum” and represent a potential breach of both the Telecommunications Act 1999 and SIMBA’s Facilities-Based Operations Licence. IMDA confirmed it has launched a formal investigation and signalled it will take enforcement action if the breach is established.
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The timing could not be worse for Tuas. The Share Purchase Agreement between the parties includes a long-stop date of 21 May 2026, meaning that if regulatory approvals and other conditions are not satisfied or waived by that deadline, either party may allow the transaction to lapse or seek to renegotiate terms.
The M1 Acquisition and Its Strategic Importance
The proposed acquisition of M1 Limited represented the centrepiece of Tuas’ growth strategy. Announced in August 2025, the deal was structured to combine SIMBA’s fast-growing, low-cost digital consumer business with M1’s established network infrastructure, spectrum holdings, and enterprise capabilities. The strategic logic was compelling: create a scaled competitor capable of challenging Singapore’s dominant operators, Singtel and StarHub, while achieving operational efficiencies and margin expansion.
To partially fund the transaction, Tuas raised A$435 million from institutional and retail investors, underscoring the confidence that markets initially placed in the combination. The deal valued M1 at S$1.43 billion on a debt-free, cash-free basis and would have given the combined entity access to M1’s valuable 900 MHz “golden band” spectrum, enhancing coverage and network performance across Singapore.
That thesis now hangs in the balance. If the transaction fails to close, Tuas reverts to being a smaller, single-market challenger without the scale benefits or infrastructure access that had underpinned its equity story. The capital raised for the acquisition would need to be redeployed or potentially returned, and growth expectations would require substantial downward revision.
Operational Strength Overshadowed
The regulatory crisis arrives at a particularly cruel moment for Tuas, which had been delivering impressive operational results. In its half-year results released in March 2026, the company reported revenue growth of 25.5% to S$91.9 million, with EBITDA rising 27% to S$42.1 million. Most striking was the company’s net profit after tax, which surged more than 500% to S$18.7 million, driven by strong subscriber growth in both broadband and mobile services through the SIMBA brand.
These numbers demonstrated that SIMBA had successfully carved out a niche as a disruptive, low-cost provider in Singapore’s tightly controlled telecommunications market. The business model was working, customer acquisition was accelerating, and operating leverage was beginning to flow through to the bottom line.
Yet markets have made clear that near-term regulatory and transaction risk now completely dominates the earnings narrative. The fundamental question is whether the alleged spectrum breach will result in penalties, remediation costs, or operational restrictions severe enough to erode those hard-won margin gains.
Company Response
In an ASX announcement, Tuas confirmed that SIMBA is “fully co-operating with the IMDA” and that the Tuas board “will also be reviewing the circumstances concerning the alleged unauthorised use of spectrum.” The statement was notably brief and did not provide details on the nature, scope, or duration of any unauthorised spectrum use, nor did it offer preliminary estimates of potential financial exposure.
The company disclosed that discussions with counterparties regarding the M1 transaction are “ongoing,” but provided no indication of whether the parties are likely to seek an extension of the long-stop date, proceed with renegotiated terms, or allow the deal to lapse entirely.
