Thursday, February 07, 2008

TMI Ups its stake in Excelcomindo

Just read from Reuters of Telekom Malaysia International is raising its stake in Excelcomindo to 83.8%.

Apparently, the increase stake was through the purchase of shares from Khazanah at a cost of RM1.43 Billion for 16.8%. This would also mean that currently the stake of TMI in Excelcomindo is worth RM7.13 Billion.

In the same news, TMI is also buying from Sunshare Investment Ltd on the 49% share that it doesn't own for MobileOne. This is worth another RM155 Million.

With the disposal of this stake, Khazanah would own shares in TMI instead of direct owning of shares at TMI's subsidiaries.

For full article with link above,

KUALA LUMPUR, Feb 6 (Reuters) - State-controlled Telekom Malaysia (TLMM.KL: Quote, Profile, Research) has agreed to buy 16.8 percent of PT Excelcomindo Pratama EXCL.JK for 1.43 billion ringgit ($442.7 million), raising its stake in Indonesia's third-largest mobile phone operator to 83.8 percent, Telekom said on Wednesday.

Telekom, through its unit Indocel, is buying the stake in Excelcomindo from its own parent, Malaysia's state investment agency Khazanah Nasional.

Khazanah has a 36.1 percent stake in Telekom, Malaysia's largest fixed-line operator.

Telekom's mobile arm, TM International, has also agreed to buy the remaining 49 percent interest in SunShare Investments Ltd that it does not already own from Khazanah for 155 million ringgit, Telekom said in a statement.

SunShare, a joint venture firm between Telekom and Khazanah, holds a 29.7 percent stake in Singapore's third-largest mobile phone operator, MobileOne Ltd (MONE.SI: Quote, Profile, Research).

Shares of Telekom closed unchanged at 11.40 ringgit on Wednesday.

Telekom said Khazanah would get new TM International shares for its disposals of the two stakes.

The acquisitions were in line with the group's strategy for earnings enhancements and stability, Telekom said.

Last September, Telekom said it would spin off its mobile business into a separately listed firm, TM International, to help unlock the value of its fastest-growing operations, separating it from its more staid fixed-line and broadband units.

TM International will house its domestic Celcom mobile unit and operations in nine other countries, including India, Indonesia, Bangladesh and Sri Lanka.

Earnings growth at Telekom, Malaysia's sixth-largest firm by market value, has mainly been driven by revenue from Celcom, Malaysia's second-largest mobile phone firm, and Excelcomindo.

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