Maxis is considering buying out U Mobile, according to a recent report by Bloomberg. Citing people with knowledge of the matter, the publication says the discussions are currently in the early stages.
Pricing could pose a significant challenge to the potential buyout, with U Mobile’s owners seeking a valuation of over RM10 billion, the sources claim. Major shareholders of the orange telco include Malaysian businessman Vincent Tan and Temasek Holdings Pte-backed Singapore Technologies Telemedia Pte. However, there is no certainty that a deal will be reached, as negotiations are still preliminary.
In a message to Bloomberg on Monday, Vincent Tan stated that U Mobile was rejecting the buyout offer and instead planning to file for an initial public offering (IPO) at the end of July. The latter has been under the telco’s consideration since 2021, the report adds.
Representatives for Maxis declined to comment on the matter, whereas a U Mobile spokesperson said the telco wouldn’t 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 the Malaysia’s government to participate in the tender of building the nation’s second 5G network,” she told Bloomberg.
(Source: Bloomberg)
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