Singapore’s ST Telemedia, a unit of investment company Temasek (TEM.UL), is to buy Malaysian tycoon Vincent Tan’s 33% stake in Malaysian 3G company U Mobile, The Star newspaper reported on Wednesday.

The Star said the deal by ST Telemedia, the parent of StarHub (STAR.SI), for the Malaysian company which is one of the four 3G spectrum holders here, could be worth 626 million ringgit ($258 million).

U Mobile was not immediately available for comment, while a spokeswoman for ST Telemedia declined direct comment but said the company was always on the lookout for growth opportunities.

“We see potential in the telecoms market in Malaysia and we are keen to participate in that growth and development,” she said.