Straits Mobile Investments Pte Ltd, a unit of a firm owned by  Singapore state investor Temasek, will reduce its shareholding in U Mobile Sdn Bhd to 20% in the deal agreed on Dec 4, according to a statement to the Singapore Exchange.

It currently holds 48%, according to a filing with the Companies Commission of Malaysia.

The shares are being sold to Mawar Setia Sdn Bhd, the statement said, without disclosing the price.

Mawar Setia is 70% owned by Tan, the founder and chairman of U Mobile, a filing shows.

The sale comes after Prime Minister Anwar Ibrahim’s government awarded a tender to roll out Malaysia’s second 5G network to U Mobile last month.

The decision surprised analysts because U Mobile is a smaller player in the industry and has a large foreign ownership.

The transaction requires regulatory approvals and is expected to be completed no later than the third quarter of 2025, according to the statement.

Communications minister Fahmi Fadzil and Tan did not immediately respond to requests for comment.