NTT DoCoMo to divest U Mobile stake

15 Sep 2009

Japanese giant NTT DoCoMo is planning to sell its entire stake in Malaysian mobile network operator U Mobile as early as this month, according to a report by Bloomberg. It is thought that the stake sale could raise approximately USD100 million, the same amount that NTT paid for its holding, with the sale believed to have been prompted by a difference of opinion related to the cellco’s management between the Japanese company and other stakeholders. NTT acquired its stake in U Mobile in December 2007, when, according to TeleGeography’s GlobalComms database, it announced it would jointly invest USD200 million with South Korea’s KT Corp (then KT Freetel) to acquire a 33% stake in the cellco’s holding company U Telecom Media Holdings. The deal was completed in April 2008. It remains unconfirmed whether KT will sell its stake, although it is believed to be a possibility.

Malaysia, NTT DOCOMO, U Mobile (Malaysia)