Telekom Malaysia has announced plans to spin off its wireless divisions to create a unit worth MYR28 billion (USD8.2 billion) that can focus on overseas expansion. Under the plan TM International will become the holding company for Celcom, Telekom’s domestic cellular business, as well as subsidiaries in countries including Sri Lanka and Indonesia. Telekom said it may sell a stake in the new company to a foreign partner. The separation will give the new company the autonomy necessary to make takeovers. TM International will be listed on the Malaysian stock exchange. The proposed spin-off is due to be completed by the end of the second quarter of 2008.
Some private equity firms and foreign phone companies have already expressed interest in buying a stake in TM International, Yusof Annuar Yaacob, TM International’s chief executive officer, told reporters. A partner will probably not be allowed to buy a controlling stake, Yusof added.