SINGAPORE (Jan 22): M1 shareholders should tender their shares in the S$2.06 a share offer by Keppel and Singapore Press amid "low" chance of a higher counter by Axiata, rising competition and room for shares to fall after the deal, Citigroup analysts
Arthur Pineda and Hussaini Saifee write in note Monday.

* Keppel and Singapore Press on Tuesday extended the offer closing date to Feb. 18 from Feb. 4

* Axiata may not consider a higher offer given its balance sheet position and overall growth bias with towers, Pineda says before statement filed for extending the offer date to Feb. 18

** Shares may fall to Citi’s pre-offer price target of S$1.71 and that of consensus at S$1.67 after the deal closes

** Competitive outlook remains difficult as TPG will be commercially launching its mobile services in 2019

* NOTE: Jan. 21, M1 Directors Recommend Shareholders Accept Keppel, SPH Offer

* Oct. 5, United First Partners Lists Four Possible Scenarios on M1 Deal