The Malaysian billionaire families behind Maxis Bhd
. and U Mobile Sdn. are reviving plans to combine the companies in a deal that could create the country’s biggest wireless operator by market value, people with knowledge of the matter said.
Maxis, backed by the holding company of late tycoon T. Ananda Krishnan, is moving a step closer to a merger by asking a select group of banks and law firms to submit proposals, the people said. The company could pick advisers shortly, according to the people, who asked not to be identified because the information is private.
The potential transaction is gaining traction as both sides are showing more willingness to negotiate, the people said. Shares of Maxis have fallen around 5% this year, giving the company a market value of about RM28.3bil.
U Mobile’s owners may seek a valuation of RM10bil or more in a deal, some of the people said. A combination of the two companies would overtake CelcomDigi Bhd., which has a market capitalisation of about RM29bil, as the country’s biggest mobile operator.
Closely held U Mobile is controlled by a vehicle backed by Malaysian princess Tun Aminah Sultan Ibrahim Ismail - the daughter of the country’s billionaire king - and businessman Tan Sri Vincent Tan.
The two firms have had on-and-off discussions on a merger for several years. Maxis had considered buying out U Mobile and had early discussions on the matter in 2024, Bloomberg News reported at the time. Local daily The Edge reported earlier this year that talks between the two parties had stalled because the parties couldn’t agree on valuations.
U Mobile was picked by the Malaysian Communications and Multimedia Commission in 2024 to implement the country’s second 5G network. It completed the migration to its own 5G network in July.
Tun Aminah’s father, Sultan Ibrahim Iskandar, is the hereditary ruler of Malaysia’s southernmost state of Johor. He took the throne in 2024 for a five-year term as king of Malaysia under the country’s rotating monarchy system.
Mawar Setia Sdn., a company controlled by the princess and Tan, owns more than 50% of U Mobile. Singapore Technologies Telemedia Pte, a unit of Singapore state investment firm Temasek Holdings Pte, cut its shareholding to 20% after agreeing to sell part of its stake to Mawar Setia.
Deliberations are ongoing and there’s no certainty they will reach an agreement, the people said. A representative for the late Krishnan’s private investment vehicle, Usaha Tegas Sdn., declined to comment. Tan also declined to comment. Spokespeople for Maxis, U Mobile and ST Telemedia didn’t respond to queries. - Bloomberg
