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Telekom Malaysia Berhad (TM), the majority shareholder in Telekom Networks Malawi (TNM) today announced the sale of its total stake in TNM to Econet Wireless Global (Econet).

In terms of the agreement of sale with Econet, TM will sell its 60 per cent stake in TNM at a price consideration of USD24.5 million. This includes all outstanding claims as well as consideration for the equity component. The sale is being effected through the acquisition by Econet of Tess International, a wholly owned subsidiary of TM, set up by TM to hold the shares in TNM.

The sale is subject to the normal regulatory processes which are common to transactions of this nature, TM said in a statement jointly released in Kuala Lumpur and Blantyre.

TNM was established in 1996 as a joint venture between TM and government-backed Malawi Telecommunications Ltd (MTL), with TM holding a 60 per cent equity and MTL the remaining 40 per cent. TNM operates a GSM service under a license valid until 2014. TM’s interest in Malawi is overseen by its overseas investment arm, TM International Sdn Bhd (TMI).

In early 2005, TM officially explained that it had initiated exit plans from Malawi through TMI, as part of a broader reorientation of its international investment strategy to focus on geographic regions closer to home. It was explained that the first part of that strategy was illustrated by the sale of its investment in Telkom SA in the second half of 2004 (duly completed in November 2004), to be followed by its other African interests in Malawi as well as Guinea.

TMI CEO Yusof Annuar Yaacob said: “In the 10 years that TM has been involved in the Malawian market, it has worked with both the government as well as people of Malawi to build a network that delivers reliable and affordable services to the people of Malawi. We are proud that to-date TNM has over 136,000 active cellular subscribers and continues to enjoy robust growth.

TM’s objective has been to divest its interest in TNM responsibly so that the people of Malawi continue to be provided with excellent service, and the staff of TNM continue to enjoy rewarding and fulfilling careers. We are of the opinion that EWG is eminently well-placed to continue this task,” he added.

Econet Group Chief Executive Officer Strive Masiyiwa said the investment by Econet in TNM is expected to bring significant benefits to the telecommunications sector in Malawi in particular, and also contribute to the growth and development of the country’s economy.

“We are proud and honored to partner with the people of Malawi to further improve the country’s telecommunications industry to world-class standards, and we intend to not only continue with the good work done by TM, but also bring new innovations and services that have become the hallmark of Econet’s success in the countries it operates,” he said.


About TM

TM, a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies on Bursa Malaysia with an operating revenue of more than RM13 billion, TM is driven to deliver value to its stakeholders in a highly competitive environment.

The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 12 countries around Asia and globally, TM is focused on achieving sustainable growth in both the local and international markets.

For further information on TM, visit www.tm.com.my

About TM International Sdn Bhd

Through its investment-holding arm, TM International, TM is one of the leading regional telecommunications companies with interests in Sri Lanka, Bangladesh, Pakistan, Indonesia, Singapore, Thailand and Cambodia. It also has selected investments in Africa namely in Guinea and Malawi.

TM International has a track record of adding value to its investments, and an approach which focuses on developing the skills and capabilities of its local management teams and working in partnership with these local teams to achieve strong market positions and profitability.

TM’s overseas investments have always contributed significantly to the Group’s overall PATAMI. For the nine months ended September 2005, TM’s overseas investment contributed 10.8 per cent or RM1.1 billion to the Group revenue. PATAMI contribution was 21.2 per cent or RM261.5 million to Group’s PATAMI.

For further information on TM International, visit www.tm.com.my

About Econet Wireless Global (Econet)

Econet is a global telecommunications company with interests in the core areas of GSM mobile telephony, fixed telephony, satellite and internet services. The Group has offices and operations in Botswana, Lesotho, Kenya, New Zealand, Nigeria, South Africa, the UK and Zimbabwe.

Over the past few years, Econet has demonstrated a very strong understanding especially of emerging markets with diverse characteristics. The company believes that its focus on innovation and the development of products and services tailored to the specific needs of each market will continue to create the platform required for growth.

Its business model which delivers not only quality service but also focuses on addressing key socio-economic issues in emerging markets has distinguished the company and endeared it to its customers in the markets it serves.

For further information about Econet, visit www.econetwireless.com.