Tuas (TUA AU): Even IF In Breach, This Is A Buy
Aussie/Singapore telco play Tuas (TUA AU) is down 55% (63% at one point) after Singapore’s telco regulator Infocomm Media Development Authority (IMDA) said Tuas may have been using unapproved spectrum.
Concurrently, IMDA halted its assessment of the proposed consolidation between Keppel (KEP SP)‘s M1 and Tuas’ Simba Telecom until further notice. That consolidation was announced last August.
Tuas was trading at A$5.51/share prior to the August announcement, and is now at $2.75, or a A$1.5bn market cap hit. That’s excessive.
The Trade:
Despite an uncertain backdrop, Tuas’ share price appears unduly beaten up here.
Yes - absent the M1 merger, Tuas remains Singapore’s budget operator.
But this is still a short-term buy.
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