KT Freetel Sells Stake in Malaysian Subsidiary

South Korea's KT Freetel is to sell its 16.5% stake in Malaysian mobile network operator, U Mobile for at least RM 360 million (US$100 million) to avoid losses on its investment. Bloomberg news reported that he company said in a regulatory filing that the sale of 62.6 million shares will go to U Mobile's major shareholder, U Television Sdn Bhd.

KTF and its 11-percent stakeholder DoCoMo originally took a 33 percent stake in Malaysia's U Mobile in December 2007 for US$200 million which was split between the two companies.

U Mobile is estimated to have ended last year with just under 200,000 subscribers, having started operations in September 2007.

On the web: Bloomberg - Mobile World

Posted to the site on 20th April 2009