corporate

STT to provide funds for U Mobile despite selling more than half of its stake

KUALA LUMPUR: Financial instruments will be included in the sale of ST Telemedia's (STT) stake in U Mobile Sdn Bhd once the required conditions for completing the disposal are met.

"As part of supporting U Mobile's growth, STT has, from time to time, provided funding to the company in the form of certain financial instruments.

"These financial instruments will also form part of the sale to the purchaser once certain conditions precedent to the completion of the sale are satisfied, including the receipt of relevant regulatory approvals," STT said in a statement today.  

STT said through wholly-owned Straits Mobile Investments Pte Ltd, its current shareholding in U Mobile's issued share capital is 49 per cent.

This is consistent with U Mobile's disclosures with the Companies Commission of Malaysia (SSM).

"STT has been a strategic shareholder in U Mobile since March 2010. Since our initial investment, we have been supportive of U Mobile's transformative growth," the company added. 

On Dec 4, STT announced that Mawar Setia Sdn Bhd would buy a controlling interest in U Mobile from Straits Mobile Investments.  

Following the completion of the transaction, Straits Mobile will retain a 20 per cent stake, with no further financial details provided in the announcement.

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