13-12-2024 (SINGAPORE) A Temasek Holdings-controlled company is valuing Malaysian mobile operator U Mobile at approximately RM7.5 billion (S$2.3 billion) in a share divestment deal, following the telco’s recent securing of a major 5G contract, Bloomberg reported yesterday, citing sources familiar with the matter.
ST Telemedia, owned by Singapore state investor Temasek, disclosed on 4 December that its wholly-owned arm Straits Mobile Investments would divest a majority stake in U Mobile. The transaction is slated for completion by Q3 2025, after which ST Telemedia’s ownership will decrease to 20%.
The current valuation represents nearly a fourfold increase from U Mobile’s estimated worth of RM1.9 billion in 2010, when ST Telemedia initially acquired its 33% stake, as reported by Malaysian business publication The Edge.
The stake sale follows U Mobile’s surprise win of Malaysia’s second 5G network contract in November. Despite being a smaller player in Malaysia’s telecommunications landscape, the company secured the nationwide infrastructure project.
According to sources, buyer Mawar Seti, jointly controlled by U Mobile chairman Vincent Tan and Johor royal Tunku Aminah, has negotiated a one-year payment deferral. Tan, who founded the Berjaya Group, shares ownership with Malaysia’s Head of State Sultan Ibrahim, who holds shares in U Mobile.
The telco is eyeing a public listing next year, subject to market conditions, U Mobile told Bloomberg. The company also confirmed its commitment to self-finance its 5G network deployment without public funding. Earlier this year, U Mobile reportedly declined a takeover bid from Malaysia’s largest telecommunications provider, Maxis.
Sources indicate that other domestic telecommunications firms, including CelcomDigi and Telekom Malaysia, may be approached for potential stake acquisitions, though U Mobile has stated it is unaware of such discussions.
