(Bloomberg) -- Maxis Bhd., a Malaysian telecommunications firm controlled by billionaire T Ananda Krishnan, is considering buying out U Mobile Sdn. to help it expand in the Asian country, according to people with knowledge of the matter.

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Kuala Lumpur-listed Maxis has expressed interest in U Mobile and talks are at an early stage, the people said, asking not to be identified discussing private information.

Malaysian businessman Vincent Tan and Temasek Holdings Pte-backed Singapore Technologies Telemedia Pte are among U Mobile’s major shareholders.

Pricing could be a hurdle to a potential buyout, with U Mobile’s owners seeking a valuation of more than 10 billion ringgit ($2.1 billion), according to the people. There’s no guarantee that a deal will be reached, they said.

In a message to Bloomberg News on Monday, Tan said U Mobile was rejecting the buyout offer and planning to file for an initial public offering at the end of July. U Mobile has been considering an IPO since 2021.

“We are rejecting Maxis offer,” Tan wrote in response to a query from Bloomberg. “We are submitting for an IPO at the end of this month.”

A representative for U Mobile said the company wouldn’t comment on market speculation. “We are very focused on delivering more innovative 5G products and services to our customers and doing the prep work required to respond to the Applicant Information Package issued by the Malaysia’s government to participate in the tender of building the nation’s second 5G network,” she said.

Representatives for Maxis and ST Telemedia declined to comment.

Founded in 2006, U Mobile is Malaysia’s youngest telecom company, according to its website. It has more than 9,000 4G sites and a network ready for 5G, the website shows. It also offers services including fintech and digital payments. Last month, it signed an agreement for an undisclosed equity stake in state-owned Digital Nasional Bhd., which is building 5G infrastructure in the country.

Maxis shares have fallen 15% over the past 12 months, for a market value of 27.3 billion ringgit. The company has over 13 million customers and a fiber network of over 22,000 kilometers (13,670 miles), its annual report shows.

(Updates share price. A previous version of this article corrected the number of 4G sites in penultimate paragraph.)

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