Published: 2010/08/16
Telekom Malaysia (TM) stands to book an extraordinary gain of RM102 million if it has written down its investment in Measat Global Bhd to RM2.50/share.
In a note here today, ECM Libra Investment Research, it was believed that TM has written down its investment in Measat to around RM2.50 per share since 2003.
"The extraordinary gain will translate to about an additional three sen for financial year 2010 earnings per share," it said.
ECM Libra said the Measat share disposal would increase TM's bulging cash pile marginally.
It said with cash and bank balances of RM3.9 billion as at Mar 31, the sale proceeds from its 15 per cent equity stake in Measat, however, were unlikely to make significance difference to TM.
"Nonetheless, as TM's cash and bank balances continue to build up, it is increasingly become a question of when, and not whether TM will return excess cash to shareholders," it said.
The research house said press reports indicated that TM was unlikely to reject the offer as the promoters would have been inclined to have approached TM before that deal was announced to get their buy-in. --
Bernama
http://www.btimes.com.my/Current_News/BTIMES/articles/20100816152542/Article/
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