Why Tuas Ltd (ASX: TUA) is down another ~30%
Tuas (ASX: TUA) was the latest bomb to go off in the ASX, falling ~40% at one stage early this morning, hitting a fresh 52-week low and extending its decline from January’s $7.805 peak to more than 80%.
The selloff follows news that Singapore’s Infocomm Media Development Authority (IMDA) has issued a regulatory notice to Tuas’ key subsidiary, Simba Telecom, over alleged unauthorised use of radio spectrum, premature deployment of 5G equipment and failure to comply fully with a document production order.
- The regulator has also raised broader concerns about Simba’s governance and compliance practices, with potential penalties including fines, although the ultimate outcome remains uncertain.
While the financial implications remain unclear, the allegations raise questions about management oversight and regulatory compliance, potentially undermining investor confidence beyond any immediate penalties.
With the stock already under significant pressure, the market is clearly unwilling to give management the benefit of the doubt until there is greater clarity on the regulator’s findings and potential consequences.
MM is neutral towards TUA around $1.25, it remains firmly in the too hard basket.
