Malayisan telco Maxis is reportedly keen to buy out rival operator U Mobile, but a deal looks uncertain with at least one major shareholder of U Mobile having already rejected the idea.
According to Bloomberg, citing anonymous sources “with knowledge of the matter”, Maxis is in early-stage talks with U Mobile for a possible buyout deal to expand its network reach.
However, according to the report, price is already a sticking point, with U Mobile’s owners – which include Malaysian businessman and investor Vincent Tan Chee Yioun and Singapore Technologies Telemedia – seeking a valuation of more than MYR10 billion (US$2.1 billion).
Maxis and ST Telemedia did not respond to requests for comment, but Tan told Bloomberg in an email that U Mobile has rejected Maxis’ offer, and is pushing ahead with plans for an IPO at the end of July.
In addition, a U Mobile spokesperson declined to comment on “market speculation”, adding that the telco remains focused on building up its 5G services portfolio.
U Mobile and Maxis both finalised their subscription share agreements to take a stake in Digital Nasional Berhad, Malaysia's sole 5G network operator, last month, along with YTL and CelcomDigi’s Infranation. Both telcos have also explicity expressed their intentions to participate in the country's planned second 5G network under the government’s planned dual network model.
Earlier this month, U Mobile and Axiata-owned telecoms infrastructure company Edotco formed a partnership to expedite rollout of the second 5G network.
