STT confirms MYR1 billion investment in U Mobile

Singapore Technologies Telemedia (STT) and Malaysia smallest mobile network operator by subscribers, U Mobile, have entered into a binding agreement which will see the former invest MYR1 billion (USD301 million) in the cellco. According to The Edge Malaysia, the deal includes the sale of a 33% stake by U Mobile chairman Tan Sri Vincent Tan, who noted that of the money to be invested by STT, approximately half will be ploughed into U Mobile, with the remainder going to the cellco’s parent company, U Television. The Singapore-based company has claimed that the investment is the ‘right strategic decision’, with STT president and CEO Lee Theng Kiat saying of the deal: ‘With its strong wireless and data focus, U Mobile will be a valuable addition to STT’s mobile footprint and is an excellent business fit for us. Our combined capabilities and market expertise will result in a significant partnership that brings long term mutual benefit.’ It is expected that following the completion of the deal STT will look to accelerate the speed of U Mobile’s 3G network deployment.