Asean Business
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Temasek Holdings Firm’s Stake Sale Values U Mobile at RM7.5 Billion
A TEMASEK Holdings firm’s stake sale agreement values U Mobile at about RM7.5 billion (S$2.3 billion), according to people familiar with the matter, after the Malaysian phone company won a major 5G contract.
Straits Mobile Investments to Cut Holdings
Straits Mobile Investments, a subsidiary of Singapore Technologies Telemedia, which is wholly owned by Singapore state investor Temasek, is cutting its holdings after Prime Minister Anwar Ibrahim’s government picked U Mobile last month to build Malaysia’s second 5G network.
Purchase Negotiations
The purchaser, a company owned by the tycoon Vincent Tan and the Malaysian king’s daughter, negotiated for payment to be deferred for up to about a year, the people said, asking not to be identified because the information is private.
U Mobile’s Selection Surprises Analysts
U Mobile’s selection to develop the network surprised analysts because it’s a smaller player in Malaysia’s telecommunications industry and has a large foreign ownership. It also counts Malaysia’s monarch, Sultan Ibrahim Iskandar of Johor, among its shareholders.
ST Telemedia’s Statement
When ST Telemedia announced the transaction last week, it said Straits Mobile was selling a “majority stake” in ST Telemedia’s “subsidiary” U Mobile and would own about 20 per cent of the company after the sale. The announcement drew scrutiny in local media because Malaysia has a 49 per cent cap on foreign ownership in telcos.
U Mobile’s Plans
U Mobile hopes to go public next year, the people familiar with the matter said. The company said in a statement to Bloomberg News that it always has the intention to do an IPO and the timing depends on market conditions.
ST Telemedia’s Funding
ST Telemedia is selling the shares to Mawar Setia, a company that’s 70 per cent owned by Tan, the chairman of U Mobile, according to a filing. Princess Aminah Ibrahim of Johor, the only daughter of Sultan Ibrahim, holds the remaining 30 per cent.
Conclusion
The stake sale agreement values U Mobile at RM7.5 billion, making it a significant player in Malaysia’s telecommunications industry. The company plans to go public next year and has secured funding for its 5G network rollout.
FAQs
Q: What is the value of U Mobile according to the stake sale agreement?
A: RM7.5 billion (S$2.3 billion)
Q: Who is buying the stake in U Mobile?
A: Mawar Setia, a company owned by Vincent Tan and Princess Aminah Ibrahim of Johor
Q: When does U Mobile plan to go public?
A: Next year, pending market conditions
Q: Who is the chairman of U Mobile?
A: Vincent Tan
