It currently holds 48%, according to a filing with the Companies Commission of Malaysia.
The shares are being sold to Mawar Setia, the statement said, without disclosing the price.
Mawar Setia is 70% owned by Tan, the founder and chairman of U Mobile, a filing shows.
Princess Aminah Ibrahim of Johor, the only daughter of Sultan Ibrahim Iskandar, the current monarch, holds the remaining 30%.
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The sale comes after Prime Minister Anwar Ibrahim’s government awarded a tender to build Malaysia’s second 5G network to U Mobile last month.
The decision surprised analysts because U Mobile is a smaller player in the industry and has a large foreign ownership. The company also counts Malaysia’s king among its shareholders. Sultan Ibrahim owns more than a fifth of the privately held company’s stock.
The ruler of Malaysia’s southern state of Johor became king in January under the country’s unique rotating monarchy where nine hereditary rulers take turns to serve five-year terms.
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Sultan Ibrahim has wide business interests, mainly through his shareholdings in various enterprises. Some of these businesses involve Tan.
The transaction requires regulatory approvals and is expected to be completed no later than the third quarter of 2025, according to the statement.
The national palace, Malaysian Communications Minister Fahmi Fadzil and Tan didn’t immediately respond to requests for comment.
