KUALA LUMPUR – Singapore’s state-linked Straits Mobile Investment Pte Ltd has agreed to reduce its stake in U Mobile Sdn Bhd to 20%, fulfilling U Mobile’s prior commitment to limit foreign ownership.
The shareholding restructuring is part of U Mobile’s strategic alignment measures following its selection by the Malaysian Communications and Multimedia Commission (MCMC) to develop Malaysia’s second 5G network.
After its selection, U Mobile announced it would lower foreign ownership to 20% to comply with national priorities.
In a statement today, U Mobile affirmed its readiness to lead the second 5G network rollout, emphasising its focus on boosting local engagement and participation in critical telecommunications infrastructure.
“While foreign ownership is common in the telco sector, U Mobile’s strategy prioritises Malaysian industry development and strengthening of local ownership.
“This increased local partnership supports U Mobile’s dedication to national interests,” the company said, as quoted by Bernama.
Currently, Straits Mobile Investments, a subsidiary of Singapore’s ST Telemedia and owned by the government investment arm Temasek Holdings, holds a 48.26% stake in U Mobile.
The largest individual shareholder, however, is Yang di-Pertuan Agong Sultan Ibrahim Sultan Iskandar, with a 22.3% stake.
Communications Minister Fahmi Fadzil previously said in Parliament that MCMC’s move to appoint U Mobile as the second 5G network operator in Malaysia was not influenced by the company’s shareholders. – November 10, 2024
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