Singapore Technologies Telemedia (ST Telemedia) announced on 4 December 2024 that its unit, Straits Mobile Investments, has signed a conditional share purchase agreement to sell a majority stake in U Mobile. Following the transaction, Straits Mobile will retain a 20% minority stake, and the Malaysian telco will no longer be a subsidiary of ST Telemedia.
The buyer, Mawar Setia Sdn Bhd, is a private Malaysian company owned by prominent business figure Tan Sri Vincent Tan (70%) and Johor princess Tunku Tun Aminah Sultan Ibrahim (30%). The company was incorporated in April this year, and additional financial details of the deal have not been disclosed.
The announcement has raised questions regarding the stake size being sold. According to data from Malaysia’s Companies Commission (SSM), Straits Mobile currently holds a 48.25% stake in U Mobile, which does not constitute a majority stake. This discrepancy, alongside the claim of retaining a 20% stake post-sale, suggests ambiguity about the exact percentage being sold and whether Straits Mobile’s ownership may exceed the disclosed 48.25%.
Additionally, ST Telemedia stated that a supplemental letter agreement would be executed among Mawar Setia, Straits Mobile, and STT Communications to amend certain rights and obligations under the shareholders’ agreement. It has not provided further clarification on the deal or the status of Straits Mobile’s ownership in U Mobile.
As you may recall, the orange telco has been selected by the Malaysian government in early November 2024 to helm the country’s second 5G network rollout. Following the announcement, U Mobile revealed that it will be cutting its foreign majority shareholding to 20% in order to ensure greater Malaysian control and invite participation from local investors.
