We refer to our announcements dated 2 December 2010 (“First Announcement”) and 3 December 2010 (“Second Announcement”) in relation to the Proposed Disposal.

With reference to the query from Bursa Malaysia Securities Berhad dated 3 December 2010 (as set out below) in respect of the breakdown of the intended application of sale proceeds under the Proposed Disposal for working capital, capital expenditure, investment and/or acquisitions (including repayment of borrowings taken in relation thereto, if any) and the timeframe for full utilisation of the sale proceeds, we, on behalf of TM, wish to announce the additional information requested as follows:

The primary objectives of the Proposed Disposal are for the disposal of the TM group’s non-core investment and crystallisation of gain accruing on the Axiata Shares, and is not a fund-raising exercise. The TM group has not determined the specific utilisation of the proceeds raised under the Proposed Disposal other than that already disclosed in the First Announcement. Accordingly, the actual breakdown and timeframe for full utilisation cannot be determined at this juncture.

We further wish to highlight that the total proceeds to be raised under the Proposed Disposal cannot be determined at this juncture as they will depend on the actual number of Axiata Shares to be sold and the selling price(s) of the Axiata Shares, both of which will depend on various factors, including, but not limited to, market demand for Axiata Shares and prevailing market conditions, as well as the TM group’s cashflow requirements and views on the future performance of Axiata Shares.

As set out in the Second Announcement, TEMSB has only disposed of 90.0 million Axiata Shares at a selling price of RM4.60 per Axiata Share out of TEMSB’s total holdings of approximately 191.5 million Axiata Shares as at 2 December 2010.


This announcement is dated 6 December 2010.