You may not have heard of billionaire David Teoh, but you have heard of his companies, including Australia’s number three telco, TPG. A multi-billion dollar bid to expand TPG’s footprint in Singapore has hit a snag, however, costing him (and his shareholders) a boatload.
David Teoh quietly built TPG into a massive Aussie telco, almost by stealth. After a series of smaller acquisitions, its largest was the $15 billion merger with Vodafone Australia in 2020. That rocketed it to number-three largest telco in the country behind Telstra and Optus, respectively.
Teoh then spent his time on an ASX-listed vehicle called Tuas that was spun off from TPG also in 2020. For most of the time since, Tuas has been a quiet little success story for Australian retail investors. On Monday, the story turned sour.
The deal
Tuas operates Simba Telecom in Singapore, the country’s fourth mobile network operator. Simba was previously known as TPG Singapore. Using TPG’s Australian playbook, Simba recently showed half-yearly revenue growth up 25%. Similarly, EBITDA climbed up 27% to S$42.1 million, and net profit up more than a whopping 500% to S$18.7 million.
In August 2025, Tuas announced it would buy M1 Limited, Singapore’s third-largest telco at a deal valued at almost $S1.5 billion.
ASX-listed Tuas (which by this point had risen from almost 450% from its listing price in 2020) funded the Australian side of the deal through a roughly $435 million equity raise. The floor price for the placement and share purchase plan was set at A$5.24, a 4.9% discount to the 8 August 2025 close. As regulatory approval was worked through, Tuas continued to rise, closing last Friday at a healthy $6.10 a share.
The twist
On Monday, Singapore’s regulator, the IMDA, announced it was suspending its review of the Tuas/Simba bid for M1 entirely. The regulator wasn’t backward about coming forward, giving a very specific reason for the suspension.
The regulator said that during its review of the proposed acquisition, it had learned that Simba may have been using radio frequency bands that it was not authorised to use. If proven, that would constitute a breach of Singapore’s Telecommunications Act and the conditions of Simba’s Facilities-Based Operations Licence.
Spectrum allocation is very serious and specific. A telco can’t operate on frequencies it hasn’t purchased or been licensed to use. These licenses cost big bucks, too. Using bands outside ones allocation is a serious compliance breach, if substantiated.
The IMDA said it has now launched a formal investigation. The M1 acquisition review would not resume until that investigation concluded.
Cue the freewill on the ASX yesterday.
Tuas Limited (ASX: TUA)
Tuas filed a statement to the ASX yesterday, undersigned by billionaire David Teoh, saying it was cooperating. It would also be conducting its own investigations, while it held crisis talks with the regulator until the deal’s official deadline of 21 May.
Tuas shares fell from a Friday close of A$6.10 to a Monday close of $2.27, a single-session fall of 63%. The intraday low touched A$1.91, a two-year low for the stock. With 548.4 million shares on issue, the company shed approximately $2.1 billion in market capitalisation in a single trading session. Ouch.
Thankfully for TPG Telecom shareholders, the parent company’s stock held steady through Monday’s session. TPG and Tuas have been entirely separate listed companies since the 2020 demerger.
TPG Telecom (ASX: TPG)
This article does not take into account the investment objectives, financial situation or particular needs of any individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances. Before acting on anything we discuss, we strongly recommend you seek the appropriate professional advice.
