Maxis Bhd and U Mobile Sdn Bhd are reviving merger talks that could combine two of Malaysia’s largest telecommunications operators and create the country’s biggest wireless operator by market value, Bloomberg reported, citing people with knowledge of the matter.
Banks and Law Firms Invited to Submit Proposals
Maxis has asked a select group of banks and law firms to submit merger advisory proposals as negotiations advance, Bloomberg reported. The company could select its advisers shortly, according to people familiar with the matter who spoke on condition of anonymity because the discussions are private. U Mobile’s owners may seek a valuation of at least RM10 billion (US$2.45 billion) for the transaction, sources told Bloomberg.
The renewed discussions follow earlier talks that stalled. Negotiation efforts between the two companies hit a wall due to U Mobile’s high asking price of RM14 billion, The Edge Malaysia reported in February, citing a source familiar with Usaha Tegas. Maxis is backed by the holding company of the late tycoon T. Ananda Krishnan, who passed away in November 2024 at age 86. His family remains on Forbes’ list of Malaysia’s wealthiest people with a combined net worth of $6.5 billion.
Financial Contrast Between the Two Operators
Maxis recorded a post-tax profit of RM1.56 billion for the financial year ended December 2025, representing an 11.8% increase from the previous year, according to its website. U Mobile reported a headline net loss that more than doubled to RM1.62 billion during the same financial period, according to the New Straits Times, citing CIMB Securities.
Maxis holds a market capitalization of approximately RM28.3 billion, according to its website. A successful combination of Maxis and U Mobile would surpass the current leading operator, CelcomDigi, which maintains a market capitalization of around RM29 billion. U Mobile operates one of Malaysia’s two 5G networks and is majority-owned by Mawar Setia, an investment vehicle with a stake exceeding 50%.
Royal and Tycoon Backing Behind U Mobile
Mawar Setia is co-founded by Malaysian princess Tunku Tun Aminah Sultan Ibrahim Ismail and local tycoon Vincent Tan. Tunku Tun Aminah, the daughter of Malaysian King Ibrahim Iskandar, assumed the role of U Mobile chairperson in March after Mawar Setia expanded its holdings in the telecom firm, Forbes reported. King Ibrahim Iskandar’s family assets were estimated at least $5.7 billion in 2024. Vincent Tan ranked 29th on Forbes’ list of Malaysia’s richest people in April with an estimated net worth of $940 million.
Market reaction to the renewed merger reports was immediate. Shares of Maxis fell 4.38% in late trading on Wednesday, Bernama reported. In response to the Bloomberg report, Maxis stated that it consistently evaluates strategic opportunities and partnerships that are value accretive, while neither confirming nor denying the merger plan. “Should there be any material corporate development, we will make the necessary disclosures to the market in a timely manner,” Maxis said in a statement reported by Bernama.
Common Questions About the Proposed Merger
Who controls U Mobile?
U Mobile is over 50% owned by Mawar Setia, an investment vehicle co-founded by Tunku Tun Aminah Sultan Ibrahim Ismail and local tycoon Vincent Tan, according to Bloomberg and Forbes reports.
What valuation are U Mobile owners seeking?
The owners of U Mobile may seek a valuation of at least RM10 billion (US$2.45 billion), sources told Bloomberg.
How did Maxis respond to the merger reports?
Maxis neither confirmed nor denied the merger report, stating that it continually evaluates strategic opportunities and partnerships that deliver value, as reported by Bernama.
What happened to previous merger discussions?
Negotiations between Maxis and U Mobile previously stalled due to an asking price of RM14 billion, The Edge Malaysia reported in February, citing a source familiar with Usaha Tegas.
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