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||16 March 2010
Temasek unit to take 33% stake in Malaysia’s U Mobile
Temasek Holdings unit Singapore Technologies Telemedia (STT) will buy a 33 percent stake in U Mobile Sdn Bhd for 625 million ringgit as part of its 1 billion ringgit investment commitment to widen its reach into Malaysia’s telecommunications market, Malaysia business daily the StarBiz reported.
It will use the balance amount to participate in a rights issue that U Mobile will make soon to fund its expansion.
U Mobile chairman Tan Sri Vincent Tan did not disclose the size of the rights issue but said the exercise would have the participation of all shareholders and would be “substantial enough to beat the competition’’.
Upon completion of the rights issue, STT will retain a 33 percent shareholding in U Mobile – one of the four Telcos in the country with a 3G spectrum.
U Mobile has been seeking a strategic investor after Japan’s NTT DoCoMo and South Korea’s KT Freetal exited U Mobile in September last year.
“STT will be an excellent partner. It is a valuable investment,’’ Tan said.
STT is buying the 33 percent stake from Tan, who has 96.04 percent equity in U Mobile via U Television Sdn Bhd. The remaining 3.96 percent is held by Multi- Purpose Holdings Bhd.
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