Mobile operators backed by late billionaire's firm, Malaysian princess-linked vehicle rep…

Plans for a merger between Maxis and U Mobile, two mobile network operators backed by firms linked to late tycoon Ananda Krishnan and the daughter of Malaysia's billionaire king, have reportedly been revived.

Maxis, whose major shareholders include Krishnan’s holding firm Usaha Tegas, has asked certain banks and law firms to submit proposals and could soon select its advisers, Bloomberg reported, citing sources with knowledge of the matter.

The owners of U Mobile might look for a valuation of at least RM10 billion (US$2.45 billion), the sources said.

Both parties have become more open to negotiations, though an agreement is not guaranteed, they added.

U Mobile operates one of Malaysia’s two 5G networks and is over 50% owned by Mawar Setia, an investment vehicle co-founded by Malaysian princess Tunku Tun Aminah Sultan Ibrahim Ismail and local tycoon Vincent Tan.

Maxis has explored taking over U Mobile for several years, with merger discussions reported as early as 2024.

The Edge Malaysia reported this February that negotiations had hit a wall due to the high asking price of RM14 billion, citing a source familiar with Usaha Tegas.

Maxis is one of the country’s largest mobile network operators with a market capitalization of about RM28.3 billion. A merger between the two could surpass the current top operator, CelcomDigi, whose market cap stands at around RM29 billion.

For the financial year ended December 2025, Maxis recorded a post-tax profit of RM1.56 billion, up 11.8% from a year earlier, according to its website.

U Mobile, meanwhile, saw its headline net loss more than double to RM1.62 billion in the same period, the New Straits Times reported, citing CIMB Securities.

The firm is chaired by Tunku Tun Aminah, whose father is Sultan Ibrahim Iskandar, the king of Malaysia.

She took on the role in March after Mawar Setia raised its holdings in the firm to more than 50%, according to Forbes, which also reported at the time that Sultan Ibrahim’s children were stepping up their business ventures in telecommunications and real estate.

The Malaysian king, whose family’s assets were estimated to be worth at least $5.7 billion in 2024, has extensive business interests. He is a business partner of Tan, who ranked 29th on Forbes' list of the richest people in Malaysia in April with an estimated net worth of $940 million.

Krishnan was also one of the country’s wealthiest tycoons before he passed away in November 2024 at age 86. His family still featured on the April list with a combined net worth of $6.5 billion.

Shares of Maxis fell 4.38% in late trading on Wednesday following reports of the renewed merger plans, Bernama reported.