Friday, December 3, 2010

Telekom Malaysia disposes 90m Axiata shares for RM414m

KUALA LUMPUR: ''Telekom Malaysia has placed out 90 million Axiata Group Bhd shares for RM414 million or RM4.60 apiece to third-party institutional investors.

In a filing to Bursa Malaysia on Friday, Dec 3, TM said that the gain on the disposal was RM209.7 million.

TM on Dec 2 had said it planned to of 191.458 million Axiata shares for RM879.4 million. The shares would represent 2.27% equity interest in Axiata held by its unit TM ESOS Management Sdn Bhd (TEMSB).

TEMSB now holds 101.458 million shares after the disposal, said TM.

TEMSB was the trustee for TM's previous employee share option scheme, under which options over ordinary shares in both TM and Axiata were granted to eligible employees of the TM group of companies.

The ESOS expired on Sept 16, 2010.'' The sale shares consist of the remaining Axiata shares held by TEMSB not offered to employees or for which options were unexercised and consequentially lapsed under the ESOS.

'Assuming that all 191.458 million sale shares are disposed at a sale price of RM4.593 per share (being the five-day volume-weighted average market price for Axiata shares up to and including Dec 1), the proceeds raised from the proposed disposal will be approximately RM879.4 million,' it said.

TM said it would use the proceeds raised under the proposed disposal for working capital, capital expenditure, investments and/or acquisitions, including the repayment of borrowings


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