KUALA LUMPUR: Berjaya Group's unit U Mobile Sdn Bhd will reduce its foreign majority shareholding to 20 per cent as it readies itself to undertake Malaysia's second 5G network rollout.
This is to ensure greater Malaysian control and invite participation from local investors, U Mobile said.
Based on the latest Companies Commission of Malaysia data, U Mobile is now nearly half-owned by Singapore-based Straits Mobile Investments Pte Ltd with a 48.3 per cent stake. Other shareholders are Magnum Bhd with a 7.8 per cent stake Singer (Malaysia) Sdn Bhd at 6.1 per cent and U Telemedia Sdn Bhd at 5.6 per cent.
Late Friday, the Malaysian Communications and Multimedia Commission (MCMC) announced that U Mobile had been selected to implement the second 5G network.
U Mobile was selected after it had "rigorously undertaken processes encompassing detailed deliberations on technical and commercial aspects", and that the selection was made in the interest of "maximising the true potential of 5G technology for the benefit of rakyat, the industry, and the nation", MCMC said.
"U Mobile, subject to the approval of MCMC, is allowed to collaborate with other MNOs (mobile network operators) in the implementation of Malaysia's second 5G network," the commision added.
U Mobile, linked to Tan Sri Vincent Tan Chee Yioun, reportedly won the bid against Maxis Bhd and CelcomDigi Bhd. The tender closed at end-July.
Previously, Telekom Malaysia Bhd had also expressed intention to lead the second network but failed to complete its subscription of shares in Malaysia's first 5G network operator Digital Nasional Bhd (DNB) within the stipulated deadline.
The share subscription was a prerequisite to bid for the second network.
U Mobile, Maxis, CelcomDigi and YTL Communications Sdn Bhd own a 16.3 per cent stake each in DNB.
The latest development could see the exit of U Mobile from DNB, and participation of CelcomDigi, Telekom Malaysia and China's technology giant Huawei in the second network operator.
"We are excited to collaborate with various stakeholders, including MCMC and other telecommunications companies such as CelcomDigi and Telekom Malaysia to deliver world-class 5G-advanced services to consumers," U Mobile said in its statement.
"U Mobile has been proactively engaging with leading global technology providers including Huawei, with whom we have had a long and enduring partnership. U Mobile will also be working with DNB to ensure consumers continue to enjoy the best 5G experience.
"With a proven track record spanning more than 17 years, U Mobile is well-positioned for the second 5G network rollout," it added.