ST Telemedia said on Thursday that it will sell the majority of its stake in Malaysian telco U Mobile to local firm Mawar Setiam, which is majority-owned by U Mobile chairman Vincent Tan, in a deal that could see the country’s royal family hold a combined controlling stake in the telco.
ST Telemedia currently owns 48.3% of U Mobile via its wholly-owned subsidiary Straits Mobile Investments. No details were given on the value of the transaction or how many shares were sold, but ST Telemedia said in a statement that the deal with Mawar Setiam will reduce its stake to 20%.
ST Telemedia also said U Mobile would cease to be a subsidiary of the company once the deal is completed, which the company expects to happen by the third quarter of 2025, pending all necessary regulatory approvals.
According to news site Soya Cincau, citing data from the Companies Commission of Malaysia (SSM), Mawar Setiam was incorporated in April 2024 by Vincent Tan, who owns 70% of the company. The other 30% is held by Johor princess Tunku Tun Aminah Sultan Ibrahim, who also chairs numerous subsidiaries of Tan’s Berjaya Corporation.
SSM data also shows that Ibrahim ibni Iskandar, the fifth Sultan of Johor and the current King of Malaysia, owns 22.31% of U Mobile. According to a report Friday from news site Malaysiakini, assuming ST Telemedia sold 28.26% of its shares to Mawar Setiam, that would give the royal family a cumulative 30.8% stake in the telco, technically making it the largest shareholder.
U Mobile had previously said it would arrange for ST Telemedia to reduce its stake to 20% after winning the rights to become Malaysia’s second 5G operator last month. U Mobile had also said the stake would be sold to a Malaysian company in an apparent bid to allay concerns over the fact that it was the only mobile operator in the running for the second 5G licence that’s majority-owned by a foreign company.
