Friday, April 17, 2009

What's happening to U Mobile?

KT Freetel's intention to exit U Mobile made me wonder if U Mobile facing any "problems" or "complications"...?

Come to think of it... It has been a while since i came across a U Mobile TV commercial...

I wonder if all of U Mobile's plans are still on track, especially its network expansion plans. To recap: The firm, controlled by tycoon Tan Sri Vincent Tan Chee Yioun, plans to invest "several hundred million US dollars" over the next few years to expand its network.

Really hope U Mobile is able to brave through all difficulties, if any. Afterall, they are the only player that offers per second billing for both postpaid and prepaid lines. All the best!!

1 Comment:

<|-DT-|> said...

Hi!

I believe that there are other motives behind the sale.

I'm not sure whether you know that 1-KT will be 'merging' with KTF on 1st June 09. Under that particular 'merger', 1-KT will be acquiring the shares of KTF under the share buyback scheme anticipated about USD 660 million.

It is not uncommon that the money from the acquiree could be used to pay off for the share buyback. This would avoid in lesser amount of loan financing required to embark the share buyback scheme and hence would lead to savings in interest.

Hence, I will not be surprised if they are currently selling non-essential asset/investment and focus on reconsilidating or improving their position in Korea before venturing overseas.

 

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