World VoIP NewsVincent Tan to sell 33 percent stakeVincent Tan to sell 33 percent stake

Vincent Tan to sell 33 percent stake

Voip, mobile network, mobile network operator, cellco
Tan Sri Vincent Tan, the president of the Berjaya Group and the single largest shareholder in Malaysia’s fourth-placed mobile network operator U Mobile, is understood to have agreed a deal to sell a part of his stake in the cellco.
Tan will offload a 33% stake in U Mobile to Singapore Technologies Telemedia (STT) in a deal believed to be worth around MYR626 million (USD183.81 million); STT is one of the major shareholders in Singaporean telco StarHub. It is understood that talks between the two sides began in September 2009, and due diligence on U Mobile is believed to have already been completed.

If the deal is completed it would mark an end to U Mobile’s hunt for a strategic investor following the announcement in September 2009 that Japan’s NTT DoCoMo and South Korea’s KT Corp were selling their combined 33% stake in the Malaysian cellco for USD200 million. U Television, controlled by Tan, acquired the stake, raising its holding in the mobile operator to 96.04%. Subsequently it was revealed that U Mobile shares had been pledged to AmBank as part of a fund raising exercise for Tan to buy out NTT and KT, and that a put option arrangement had been agreed with Multi-Purpose Holdings Bhd (MPHB) that acted as a guarantee against any loan default. This option was for a 41.63% block in U Mobile at MYR280 million for 13 months, starting September 2009, at which date MPHB also acquired a 3.96% stake in the cellco.

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