KUALA LUMPUR, July 17 — Maxis is looking to acquire U Mobile to help expand its market share according to a new report by Bloomberg. However, the deal is still in the early stages and already facing several major hurdles.

For starters, the acquisition is going to be quite costly. Bloomberg’s sources claimed that U Mobile is currently looking at a valuation of more than RM10 billion.

This does not come as a surprise given that the telco is said to have crossed the 9 million subscribers mark last year. U Mobile’s national population coverage for 4G currently stands at 95 per cent at the end of Q1 2024.

Maxis’ offer may have been rejected by U Mobile

On the other hand, U Mobile may have already dismissed the proposal from Maxis. In the same report, one of the telco’s major shareholders, prominent businessman Tan Sri Vincent Tan told Bloomberg that the telco has rejected the offer from Maxis.

Instead, the telco is planning to submit an initial public offering (IPO) at the end of this month. It is something that has been in the works for years but has not come to fruition so far.

U Mobile is currently aiming for Malaysia’s second 5G network

On the other hand, U Mobile has said that it does not comment on market speculation. The telco also added that it is currently busy preparing to participate in the tender for Malaysia’s second 5G network.

In addition to that, U Mobile recently has also signed a strategic partnership with several Network Facility Providers (NFPs) to solidify its readiness towards the rollout of the second 5G network in Malaysia. The list of NFPs that it has signed includes Bullish Aim, EdgePoint Towers, Naza Communications, OCK Group, and Edotco.

Earlier this year, the company also signed a deal with Huawei to explore the 5G-to-Business segment through a variety of core technologies. U Mobile is also looking into 5G Advanced technology through a collaboration with ZTE and CelcomDigi. — SoyaCincau