Maxis Bhd is understood to have held high-level discussions with shareholders of U Mobile Sdn Bhd about a potential acquisition, but negotiations have reportedly stalled due to disagreements over valuation.
Sources familiar with the matter said U Mobile’s shareholders are seeking RM14 billion, which Maxis considers too high. It is unclear whether the proposed offer involved cash, shares, or a combination of both.
Neither Maxis nor U Mobile responded to queries.
A source close to Usaha Tegas Sdn Bhd — the investment vehicle of the late billionaire Ananda Krishnan, which controls 62.24% of Maxis — confirmed that talks had taken place but have been stalled for about four months.
“The issue is pricing. The asking price is too high,” the source said, adding that the valuation appears unjustified given current industry conditions. The source pointed to Digital Nasional Bhd’s (DNB) financial struggles as an example.
For the financial year ended December 2024, DNB posted an after-tax loss of RM1.21 billion on revenue of RM341.17 million. As at end-2024, it had total assets of RM4.67 billion and liabilities of RM6.42 billion, with accumulated losses of RM3.16 billion.
Market speculation about a Maxis-U Mobile deal has been circulating since mid-2024. Reports previously indicated that U Mobile had rejected earlier offers and was considering an initial public offering (IPO).
U Mobile was appointed in November 2024 to deploy Malaysia’s second 5G network, with the official award issued in March 2025. This strategic role is seen as strengthening its bargaining position.
According to one source, Maxis had reportedly increased its offer to RM12 billion from an earlier RM10 billion, but shareholders, including Tan Sri Vincent Tan, declined the proposal. Tan’s valuation expectations are said to be supported by IPO plans that could value U Mobile between RM11 billion and RM12 billion.
Some bankers said they were aware of market talk about a potential merger but had not received formal instructions from Maxis. The telco has denied issuing any request for proposal to banks regarding the matter.
As at end-2024, U Mobile had total assets of RM5.98 billion and liabilities of RM8.02 billion. It recorded a net loss of RM722 million for FY2024 on revenue of RM3.73 billion, bringing accumulated losses to RM4.67 billion.
Maxis, in comparison, reported a net profit of RM1.56 billion on revenue of RM10.63 billion for its financial year ended December 2025. It had RM458 million in cash and deposits, total borrowings of RM8.98 billion, and reserves of RM3.54 billion.
Maxis shares closed at RM3.83 last Thursday, giving the company a market capitalisation of RM30 billion.
Whether discussions between the two parties will resume remains uncertain.
