PETALING JAYA: The much speculated purported merger between U Mobile Sdn Bhd and Maxis Bhd may not materialise after all, going by some news reports that have emerged recently.
NST reported that major shareholders of U Mobile Sdn Bhd will reject any buyout offers for the telecom-munications company, citing people with knowlege of the matter.
The report said this is because the major shareholders, including Berjaya Group founder Tan Sri Vincent Tan Chee Yioun, want to continue U Mobile’s expansion to become one of Malaysia’s top 5G players, the sources disclosed.
They also said that U Mobile is on track to file for an initial public offering (IPO) in the current quarter, the report added.
The purported merger attracted attention following a report published by SunBiz on July 18, quoting Communications Minister Fahmi Fadzil as stating that the Malaysian Communications and Multimedia Commission will ensure that any merger between telecommunications service providers upholds healthy competition and prevents monopolies in the industry.
The minister said this when responding to a question from a reporter following a news report earlier in the week about a possible Maxis-U Mobile merger.
Furthermore, Fahmi was quoted saying the proposal for Maxis to acquire U Mobile is primarily a commercial decision made by the companies involved and the government does not interfere in these business decisions and remains neutral on whether the merger would be beneficial or detrimental to the market.
Founded in 2006, U Mobile has been considering a listing since 2019, with plans to raise about US$500 million (RM2.1 billion) in the IPO. Another major shareholder of U Mobile is Singapore Technologies Telemedia Pte Ltd, backed by Temasek Holdings Pte Ltd.
Last Monday, it was reported that Maxis, ranked as the country’s second-largest mobile operator and controlled by billionaire T. Ananda Krishnan, was considering buying out U Mobile to expand its presence in Malaysia.
Quoting people with knowledge of the matter, the report stated that Maxis had expressed interest in U Mobile and talks were at an early stage. It said that pricing could be a hurdle to a potential buyout, with U Mobile’s owners seeking a valuation of more than RM10 billion, and there was no guarantee that a deal would be reached.
Meanwhile, a source had told Business Times that the shareholders of U Mobile are not selling and that they aim to launch an IPO and plan to grow the company.
U Mobile has an estimated 8.5 million subscribers and more than 9,000 4G sites, with a network ready for 5G.
