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Telekom Malaysia Berhad (TM) refers to the story by an international news agency datelined Conakry and published in a major local daily on 13 December 2005. This press statement has been prepared to clarify TM’s position regarding its exit from its investment Societe des Telecommunications de Guinee (Sotelgui s.a.). “In a joint decision taken with senior Government of Guinea (GoG) officials, TM has decided to cease all operational and managerial control of Sotelgui as the initial step to our total exit from Guinea. In the interest of the strong relations between both countries, both parties are focused on an expeditious and smooth handover of operational responsibility to Guinean representatives,” TM International Sdn Bhd (TMI) CEO Yusof Annuar Yaacob said.
En Yusof explained that TM would continue to have Board representation in Sotelgui and the Board will oversee the new management, until all other exit-related issues including equity transfer are finalised. As shareholders of Sotelgui, both TM and GoG have a mutual interest in concluding a sale process as soon as possible, he said.
TM had early this year explained that its plans to divest its Guinean investment was part of a broader strategic decision to divest all its African investments. This is in keeping with its international strategy to focus on geographic regions closer to home. TM had officially informed the GoG of its intention to exit in December 2004 and both had commenced discussions based on the common understanding that TM’s decision to exit is a strategic one.
TM’s investment in Guinea commenced on 23 December 1995 with the signing of a Joint Venture Agreement (JVA) with the Government of Republic of Guinea (GoG). The JVA was for a 60 per cent stake in Sotelgui s.a. (or the Telecommunications Company of Guinea), which TM currently holds, with the remaining 40 per cent being held by GoG. TM initial investment was for US$45 million.
TM has been involved in the development of Sotelgui’s fixed line and cellular infrastructure for over ten years, working with the people of Guinea to build a network that delivers reliable and affordable telecoms services. As at September 2005, Sotelgui had over 161,800 active subscribers.
Announcement Info
| Company Name |
TELEKOM MALAYSIA BERHAD |
| Stock Name |
TELEKOM |
| Date Announced |
13 Dec 2005 |
| Category |
General Announcement |
| Reference No |
TM-051213-4FFE2 |