Telekom Malaysia has signed a settlement and transfer agreement (STA) with the Government of Guinea for the sale of its entire 60% stake in fixed line telco Sotelgui. The Malaysian company said it will continue to have board representation in Sotelgui until the completion of the STA, which is expected on 1 September 2008. Telekom Malaysia will record a MYR82 million (USD24.7 million) foreign exchange loss as a result of the deal.
According to TeleGeography’s GlobalComms database, Soltelgui was established in 1993 and was privatised two years later when Telekom Malaysia purchased a 60% stake for USD45 million. However after a decade of ownership Telekom Malaysia announced plans to quit Guinea, as part of a broader review of its international investment strategy to focus on geographic regions closer to home. In December 2005 all operational and managerial control of Sotelgui reverted to the Government; at the same time Telekom Malaysia wrote down the value of investment to MYR1.