TM shareholders approve demerger; wireless unit to be listed in Q2

6 Mar 2008

Telekom Malaysia™ has announced that its shareholders have approved its proposed demerger, and that plans to float its mobile and overseas operations by June remain on track. According to the plan TM will spin off its mobile and non-Malaysian businesses, TM International (TMI), which will then be listed as a separate entity on the main board of the Malaysian bourse. Telekom Malaysia’s domestic fixed-line voice, data and broadband operations will operate as a stand alone company. Under the demerger proposal, TM shareholders will receive one TMI share for every single TM share held. ‘We believe that this will result in significant operational and strategic benefits to both TM and TMI moving forward. Their approval is an endorsement of the group’s transformation efforts,’ said TM chairman Mohammad Radzi Mansor. The TM chief said the demerger is expected to be completed next month when the company holds its annual shareholder meeting, and the listing of TMI will happen thereafter. ‘We have been given the time guidance by the end of the second quarter, so indeed, the listing should happen before June,’ he said. The CEO reiterated that the company has still to decide whether or not to bring in a foreign partner at TMI. The company previously said it may sell a portion of its stake in TMI to a foreign entity. ‘We are still evaluating, there is no specific proposal to be evaluated per se. The first step will be to determine whether we really need a partner,’ he said. Earlier media reports said TM has shortlisted at least three foreign parties for the proposed sale of the TMI stake and France’s Vivendi and China Mobile were quoted as among the interested telcos.

Malaysia, Telekom Malaysia