Singapore’s ST Telemedia to acquire 33-per cent stake in Malaysia’s U Mobile for $303 million

Singapore Technologies Telemedia (ST Telemedia), the operator of the island nation's second-largest mobile network StarHub and a global player, has entered into a definitive agreement with Malaysia's U Television Sdn Bhd (UTV), to acquire 33-per cent stake in its U Mobile Sdn Bhd (U Mobile), expanding the company's footprint in the region.

The deal signed on Monday in Kuala Lampur, in the presence of Malaysia's minister of information, communications and culture, Y B Dato Seri Utama Dr Rais Yatim, is valued at approximately 1 billion Malaysian Ringgits ($303) which includes subscription to a proposed rights issue by U Mobile.

Kuala Lumpur-based U Mobile is the country's fourth mobile operator and also a provider of 3G services since 2008. It has a very small share of less than 1 per cent in the Malaysian mobile telecommunications market which is dominated by Maxis Communication's Maxis, Axiata group's Celcom and Telenor controlled DiGi.

U Mobile is a privately held company, about 96 per cent of which is owned by its chairman Tan Vincent and the remaining 4 per cent by Multipurpose Holding Berhand.

The operator's 3G coverage areas include Klang Valley (Greater Kuala-Lumpur), Seremban, Port Dickson, Ipoh and Johor Bahru.

Through the strategic partnership with ST Telemeida, U Mobile expects to benefit from the transfer of skills and technology to pave the way for improved mobile service delivery as the company is planning to accelerate the 3G network rollout, a statement said.