TM agrees to dispose of stake in MEASAT

Published: 2010/09/06

Telekom Malaysia (TM) has accepted the conditional take-over offer from MEASAT Global Network Systems Sdn Bhd to acquire TM's entire 15.39 per cent stake in MEASAT Global Bhd (MEASAT) for RM4.20 per share.

"The TM Board after due deliberation wishes to announce the company today accepted the offer and shall dispose its stake in MEASAT vide the acceptance of the offer," said TM in a filing to Bursa Malaysia Securities today.

It said the RM4.20 offer price represents a 40 sen premium or 10.53 per cent to the last traded market price of MEASAT shares on July 27, being the last full trading day for MEASAT shares before the date of notice of the offer on July 28.

The gross proceeds to be received from the disposal of RM252.101 million will be used for working capital requirements of the TM Group.

"The disposal provides an opportunity for TM to monetise its investment and will contribute positively to the earnings of the TM Group for the financial yead ending Dec 31, 2010," it said.

This exercise is not subject to approval of any authorities or TM's shareholders, it added.

MEASAT was incorporated under the name of Malayan Tobacco Company Limited in 1956 but later due to a reverse take-over exercise by MEASAT Satellite Systems Sdn Bhd in 2002, the company changed its name to MEASAT Global Bhd to reflect the core business of MEASAT Group as the owner of Malaysia''s sole licensed regional satellite system. -- Bernama

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