KUALA LUMPUR, Malaysia-Malaysia’s largest mobile operator Maxis Communications said it entered an agreement to purchase mobile operator TimeCel from TimeDotcom for as much as $340 million. The final price will be determined after a 60-day due diligence.
The transaction brings about much-anticipated consolidation in the Malaysian market. The country currently has five mobile operators and a population base of 23 million. The government recently awarded two $13.2 million third-generation licenses to Maxis and the country’s third-largest mobile operator Telekom Cellular.
TimeDotcom and Technology Resources Industries, which owns the second-largest operator Celcom, bid on 3G licenses, but were not awarded licenses. Telekom Cellular is in the process of merging with TRI.
Subscribe now to get the daily newsletter from RCR Wireless News
Maxis said it plans to develop a migration plan for TimeCel’s and its mobile networks following the close of the transaction. The companies also plan to cooperate in the fixed-line business.
“Maxis will be able to increase its network capacity and thereby allow it to further optimize network design especially in urban areas,” the company said.
Maxis operates a GSM 900 MHz network, while TimeCel operates a GSM 1800 MHz system.
