Kuala lumpur: AFFIN Group and MBSB Bank Berhad ('MBSB Bank') have jointly committed RM3.8 billion in a syndicated facility to support Mawar Setia Sdn Bhd's acquisition of over 50% controlling stake in U Mobile Sdn Bhd. Under the syndicated arrangement, AFFIN Group has committed RM2.4 billion, while MBSB Bank has committed RM1.4 billion. Proceeds from the facility will part-finance Mawar Setia's purchase of shares from Straits Mobile Investments Pte Ltd.

According to BERNAMA News Agency, the acquisition aims to bolster the financial and operational capabilities of U Mobile. This strategic move is anticipated to enhance U Mobile's market position in the telecommunications sector. The involvement of AFFIN Group and MBSB Bank signifies strong financial backing for the transaction.

The commitment from these financial institutions reflects confidence in the telecommunications industry and its growth potential. The syndicated facility underscores the importance of strategic partnerships in facilitating large-scale corporate acquisitions.