KUALA LUMPUR: Maxis Bhd
, controlled by billionaire T. Ananda Krishnan, is considering buying out U Mobile Sdn Bhd to help it expand in the country, according to people with knowledge of the matter.
Maxis has expressed interest in U Mobile and talks are at an early stage, the people said, asking not to be identified discussing private information.
Businessman Tan Sri Vincent Tan and Temasek Holdings Pte-backed Singapore Technologies Telemedia Pte 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 RM10bil, according to the people. There’s no guarantee that a deal will be reached, they said.
In a message to Bloomberg News on Monday, Tan said U Mobile was rejecting the buyout offer and planning to file for an initial public offering (IPO) at the end of this month. U Mobile has been considering an IPO since 2021.
“We are rejecting Maxis’ offer,” Tan wrote in response to a query from Bloomberg. “We are submitting for an IPO at the end of this month.”
A representative for U Mobile said the company wouldn’t 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 the Malaysian government to participate in the tender of building the nation’s second 5G network,” she said.
Representatives for Maxis and ST Telemedia declined to comment. — Bloomberg
