Singapore Technologies Telemedia (ST Telemedia) announced that its wholly owned subsidiary, Straits Mobile Investments Pte Ltd, has entered into a conditional share purchase agreement with Mawar Setia Sdn Bhd for a minority stake in U Mobile Sdn Bhd.

The completion of the transaction is contingent upon the satisfaction of certain conditions, including regulatory approvals, and is expected to take place no later than the third quarter of 2025. As part of the deal, a supplemental letter agreement to the existing shareholders' agreement will be entered into by Mawar Setia, Straits Mobile and STT Communications Ltd, a wholly owned subsidiary of ST Telemedia. This agreement will amend certain rights and obligations under the current shareholders' agreement.

Founded in 2006, U Mobile is Malaysia's youngest telecommunications company with a network ready for 5G. Earlier this year, U Mobile was reported to be planning a domestic IPO that could raise over US$500 million as early as the first half of 2025.

ST Telemedia, a unit of Singapore's state investor Temasek, operates in various sectors including data centres and infrastructure technology. Upon the completion of the deal, U Mobile will no longer be a part of the ST Telemedia group.