KT Freetel Bails out from U Mobile

Looks like things can’t get any worse for Malaysia’s worse telco – U Mobile.

Got this feed from Bloomberg.

“KT Freetel Co. (032390 KS): The second-largest South Korean wireless service provider will sell a 16.5 percent stake in Malaysia’s U Mobile Sdn. for at least $100 million to avoid losses on its investment. KT Freetel will sell the 62.6 million shares to U Mobile’s major shareholder, it said. KT Freetel declined 1.1 percent to 26,550 won.”

Barely a year after the investment was finalised, KT Freetel will be selling off its stake in U Mobile to avoid losses.

In addition, NTT DoCoMo has shares in both KT Freetel and U Mobile, and if our experience serves us right, it won’t be long till the Japanese telco pulls out from U Mobile as well.