Singapore Technologies Telemedia will pay 1 billion ringgit ($421.9 million) for a 33% stake in U Mobile Sdn Bhd, including subscribing to a rights issue by the Malaysian 3G mobile services provider.

The acquisition is a “strategic decision” by ST Telemedia to build a strong business in Asia, said Lee Theng Kiat, ST Telemedia’s chief executive at a signing ceremony.