Maxis and U Mobile merger plans revived, sources say
U Mobile’s owners may seek RM10 billion or more, while Maxis is seeking proposals from potential advisers, according to people familiar with the matter.
The billionaire families backing Maxis Bhd and U Mobile Sdn Bhd are renewing efforts to merge the operators, according to people familiar with the matter. The potential combination could become Malaysia’s largest wireless operator by market value.
Maxis has invited proposals from selected banks and legal firms and could appoint advisers soon, the people said. They described greater willingness on both sides to negotiate, but cautioned that discussions remain under way and may not produce an agreement.
Some of the people said U Mobile’s owners may pursue a valuation of at least RM10 billion. Maxis has a market value of about RM28.3 billion after its shares declined around 5% this year. CelcomDigi Bhd, which a combined operator would surpass, is valued at about RM29 billion.
Maxis is backed by the holding company of the late T Ananda Krishnan. More than 50% of U Mobile belongs to Mawar Setia Sdn Bhd, controlled by Tun Aminah Sultan Ibrahim Ismail and Tan Sri Vincent Tan.
Merger discussions have taken place intermittently over several years. Bloomberg News reported preliminary talks over a possible Maxis acquisition in 2024. The Edge subsequently reported that valuation disagreements had stalled negotiations.
A representative of Usaha Tegas Sdn Bhd, Krishnan’s private investment vehicle, and Tan declined to comment. Maxis, U Mobile and ST Telemedia spokespeople did not respond to questions.
