Australian company Tuas revealed that the Singaporean Communications Supervisory Authority plans to punish its subsidiary Simba Telecom for unauthorized use of the RF band. Tuas' stock price plummeted by up to 40%, the biggest drop since May 18. According to the exchange announcement submitted on Monday, Simba received a “Notice of Reasons” from the Information and Communications Media Development Authority of Singapore on Friday to supervise the adoption of relevant regulatory measures. IMDA accuses Simba of unauthorized use of an unlicensed RF band for several periods in 2022 and 2026. Potential regulatory dispositions include suspending or withdrawing spectrum usage rights and requiring Simba to pay a fine of up to S$1 million or 10% of the relevant annual revenue of the business. Simba plans to respond to the notice by November 16, and Tuas has no plans to comment further. Citibank analyst Siraj Ahmed took the lead and stated in the research report: “In our previous target price estimates, we assumed that the probability of license being revoked was only 10%. This probability is low; subsequent compliance and governance costs are likely to rise, and the management team may also change.” Citi gave a price target of 2.95 Australian dollars.

Australian company Tuas revealed that the Singaporean Communications Supervisory Authority plans to punish its subsidiary Simba Telecom for unauthorized use of the RF band. Tuas' stock price plummeted by up to 40%, the biggest drop since May 18. According to the exchange announcement submitted on Monday, Simba received a “Notice of Reasons” from the Information and Communications Media Development Authority of Singapore on Friday to supervise the adoption of relevant regulatory measures. IMDA accuses Simba of unauthorized use of an unlicensed RF band for several periods in 2022 and 2026. Potential regulatory dispositions include suspending or withdrawing spectrum usage rights and requiring Simba to pay a fine of up to S$1 million or 10% of the relevant annual revenue of the business. Simba plans to respond to the notice by November 16, and Tuas has no plans to comment further. Citibank analyst Siraj Ahmed took the lead and stated in the research report: “In our previous target price estimates, we assumed that the probability of license being revoked was only 10%. This probability is low; subsequent compliance and governance costs are likely to rise, and the management team may also change.” Citi gave a price target of 2.95 Australian dollars.