ST Telemedia to sell shares in Malaysia 5G winner to tycoon Vincent Tan
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ST Telemedia, which is owned by Temasek, is selling part of its stake in U Mobile to an entity controlled by tycoon Vincent Tan and the Malaysian king’s daughter.
PHOTO: ST TELEMEDIA
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SINGAPORE – A Temasek firm is cutting its investment in a Malaysian phone company that recently won a major 5G contract, selling part of its stake to an entity controlled by tycoon Vincent Tan and the Malaysian King’s daughter.
Singapore Technologies Telemedia (ST Telemedia) said its unit, Straits Mobile Investments, will reduce its shareholding in U Mobile to 20 per cent in the deal agreed on Dec 4, according to a statement to the Singapore Exchange. ST Telemedia is owned by Singapore’s investment company Temasek and currently holds 48 per cent, according to a filing with the Companies Commission of Malaysia.
The shares are being sold to Mawar Setia, the statement said, without disclosing the price. Mawar Setia is 70 per cent owned by Mr Tan, founder and chairman of U Mobile, a filing shows. Princess Aminah Ibrahim of Johor, the only daughter of the Malaysian monarch Sultan Ibrahim Iskandar, holds the remaining 30 per cent.
The sale comes after Malaysian Prime Minister Anwar Ibrahim’s government awarded a tender to build Malaysia’s second 5G network to U Mobile in November.
The decision surprised analysts because U Mobile is a smaller player in the industry and has a large foreign ownership. The company counts Malaysia’s King among its shareholders. Sultan Ibrahim owns more than a fifth of the privately held company’s stock.
The ruler of Malaysia’s southern state of Johor became king in January under the country’s unique rotating monarchy where nine hereditary rulers take turns to serve five-year terms.
Sultan Ibrahim has wide business interests, mainly through his shareholdings in various enterprises. Some of these businesses involve Mr Tan.
The transaction requires regulatory approvals and is expected to be completed no later than the third quarter of 2025, according to the statement.
The national palace, Malaysian Communications Minister Fahmi Fadzil and Mr Tan did not immediately respond to requests for comment.
ST Telemedia, whose businesses include data centres and infrastructure technology, said U Mobile will cease to be a subsidiary of the company following the completion of the deal with Mawar Setia. BLOOMBERG
