Singapore Technologies Telemedia said on Wednesday Malaysia's Mawar Setia will acquire a majority stake in the company's U Mobile unit, a mobile and broadband service provider in Malaysia.
Under a conditional share purchase deal, Mawar Setia will acquire the stake in U Mobile from Straits Mobile Investments, a unit of ST Telemedia, the Singapore-based firm said in a statement.
Straits Mobile will hold a 20pct stake following completion of the deal. Other financial details of the deal were not disclosed by ST Telemedia, which is owned by Singapore state investor Temasek.
Mawar Setia is a private company in Malaysia, according to the statement, which did not provide further details on the company. Singapore Technologies Telemedia (ST Telemedia) was not immediately available for comment.
Founded in 2006, U Mobile is Malaysia's youngest telecommunication company with a network ready for 5G, according to its websites.
Earlier this year, Reuters reported citing sources that U Mobile is planning a domestic initial public offering (IPO) that is expected to raise more than US$500 million as early as the first half of 2025.
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. --REUTERS