Article Entitled : "TRI Decision May Be Challenged"

27 June 2002

Type Reply to query
Reply to Query Letter by KLSE reference ID ZO-020626-63577
Subject ARTICLE ENTITLED : "TRI Decision May Be Challenged"

Contents :

We refer to the Exchange's letter dated 26 June 2002 on the following news article appearing on Bloomberg on Wednesday, 26 June 2002 :-


1. "Technology Resources Industries' (4189) decision to re-elect Chairman Tajudin Ramli and 4 other directors may be challenged by Telekom Nasional (4863)."

2. "...that Telekom and Employees Provident Fund who hold combined stake in excess of 50% were prevented from taking part at AGM today on technicality: expects today's decision to be declared illegal at EGM, due July 16. Such a decisive move would likely allow Telekom to avoid making general offer for TRI but get board representation."

Telekom Malaysia Berhad's ("TM") wishes to clarify as follows :-

(a) TM presently has direct and indirect interest in 31.25% of the share capital of TRI whilst based on the announcement by TRI to the KLSE on the changes in substantial shareholdings dated 10 June 2002, the Employees Provident Fund has direct and indirect interest of approximately 10.86% of the share capital of TRI as at 29 May 2002.

    • TM is therefore unaware of the basis for the statement that TM and EPF hold a combined stake in excess of 50% of the share capital of TRI.

(b) TM in its media statement dated 26 June 2002 has made clear that it would take all necessary actions to protect its rights as a shareholder of TRI. TM is currently exploring various courses of actions to redress the actions of TRI.
    • TM would also like to clarify that it has not made any decision regarding any actions which seek to declare "today's decision" illegal.

(c) As stated in TM's announcement dated 7 June 2002, TM's legal counsel opined that TM is not obliged to undertake a mandatory offer for TRI as a result of TM's proposal to change the composition of the Board of TRI.
    • In addition, TM has highlighted on numerous occasions that it has no intention of avoiding any obligation to undertake a mandatory offer for TRI as a consequence of the merger of TM Cellular Sdn. Bhd. and Celcom (Malaysia) Berhad under TRI.

Query Letter Contents :

We refer to the above news article appearing on Bloomberg on Wednesday, 26 June
2002, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined
sentences, which are reproduced as follows:-
"Technology Resources Industries' (4189) decision to re-elect Chairman Tajudin
Ramli and 4 other directors may be challenged by Telekom Nasional (4863)."
"... that Telekom and Employees Provident Fund who hold combined stake in
excess of 50% were prevented from taking part at AGM today on technicality;
expects today's decision to be declared illegal at EGM, due July 16. Such a
decisive move would likely allow Telekom to avoid making general offer for TRI
but get board representation."
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentences after due and diligent enquiry with all the directors,
major shareholders and all such other persons reasonably familiar with the
matters about which the disclosure is to be made in this respect. In the event
you deny the above sentences or any other part of the above reported article,
you are required to set forth facts sufficient to clarify any misleading
aspects of the same. In the event you confirm the above sentences or any other
part of the above reported article, you are required to set forth facts
sufficient to support the same.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully

LISA LAM
Senior Manager, Listing Operations
LL/YYT/ZOOS
c.c. Securities Commission (via fax)


Announcement Info

Company Name TELEKOM MALAYSIA BERHAD
Stock Name TELEKOM
Date Announced 27 Jun 2002
Category General Announcement
Reference No TM-020627-53693