Malaysian cellular firm Maxis exploring U Mobile buyout: Sources

Maxis, a Malaysian telecommunications firm controlled by billionaire Ananda Krishnan, is considering buying out U Mobile to help it expand in the Asian country, according to people with knowledge of the matter.

Kuala Lumpur-listed Maxis has expressed interest in U Mobile and talks are at an early stage, the people said, asking not to be identified.

Malaysian businessman Vincent Tan and Singapore investment firm Temasek-backed ST Telemedia are among U Mobile’s major shareholders. 

Pricing could be a hurdle to a potential buyout, with U Mobile’s owners seeking a valuation of more than RM10 billion (S$2.9 billion), according to the people. There is no guarantee that a deal will be reached, they said. 

In a message to Bloomberg News on July 15, Mr Tan said U Mobile was rejecting the buyout offer and planning to file for an initial public offering (IPO) at the end of July.

U Mobile has been considering an IPO since 2021.

A representative for U Mobile said it will not comment on market speculation. “We are very focused on delivering more innovative 5G products and services to our customers and doing the prep work required to respond to the Applicant Information Package issued by Malaysia’s government to participate in the tender of building the nation’s second 5G network,” she said.

Founded in 2006, U Mobile is Malaysia’s youngest telecoms company, according to its website. It has more than 9,000 4G sites and a network ready for 5G, the website shows. It also offers services including fintech and digital payments.

In June, it signed an agreement for an undisclosed equity stake in state-owned Digital Nasional, which is building 5G infrastructure.

Maxis shares have fallen 15 per cent over the past 12 months, for a market value of RM27.3 billion. It has more than 13 million customers and a fibre network of over 22,000km, its annual report shows. BLOOMBERG