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.
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.
