Maxis is currently considering a buyout of U Mobile as part of its strategy to expand within the Asian market.
Sources familiar with the matter have indicated that Maxis has shown interest in acquiring U Mobile, although discussions are still in the early stages, according to Bloomberg.
One of the significant challenges to this potential buyout is the pricing. U Mobile’s owners are reportedly seeking a valuation exceeding RM10 billion.
This high valuation could be a stumbling block in the negotiations, and there is no certainty that a deal will be finalised.
According to a report by Bloomberg, Tan Sri Vincent Tan has stated that U Mobile is rejecting the buyout offer from Maxis and is instead planning to proceed with an initial public offering (IPO) by the end of July. U Mobile has been contemplating an IPO since 2021.
During an IPO, a privately held company offers its shares on a stock exchange, thereby making them accessible for the general public to buy.
Tan and Singapore Technologies Telemedia Pte, which is backed by Temasek Holdings Pte, are among the major shareholders of U Mobile.
In response to a query from Bloomberg regarding the buyout, Tan wrote:
We are rejecting Maxis’ offer. We are submitting for an IPO at the end of this month.
Vincent Tan
A representative for U Mobile declined to comment on market speculation, stating that the company is focused on innovation and preparing for future opportunities.
They emphasised their commitment to delivering innovative 5G products and services and preparing to respond to the Malaysian government’s Applicant Information Package for the tender to build the nation’s second 5G network.
The outcome of these developments remains uncertain, but it is clear that U Mobile is prioritising its IPO plans and its role in Malaysia’s 5G network expansion over the buyout offer from Maxis.
