DoCoMo exits Malaysia with U Mobile stake sale

Dylan Bushell-Embling
16 Sep 2009
00:00

Japan's NTT DoCoMo will sell off its stake in Malaysian mobile operator U Mobile, less than two years after buying in jointly with KT Freetel.

DoCoMo said it will sell its 16.5% stake to U Mobile majority shareholder U Television for $100 million – the same amount DoCoMo originally paid for the shares.

South Korean partner KT Freetel sold its 16.5% stake in U Mobile in April. Analysts said U Mobile's growth prospects had lowered since the companies acquired their stakes. The two companies are also reported to have had business differences with U Mobile management.

U Television will own nearly 100% of U Mobile after the divestiture, but may sell up to a 45.5% stake to Malaysian holdings company MPHB, The Star reported.

DoCoMo has been pursuing an international expansion strategy to compensate for market saturation in Japan. In July, the company said India would be at the forefront of this push.

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