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We refer to our announcement dated 28 October 2002.
On behalf of Telekom, Commerce International Merchant Bankers Berhad wishes to announce that on 11 March 2003, Telekom was informed by Celcom that DeTe Asia Holding GmbH (“DeTe Asia”) has, on 10 March 2003, filed a Request for Arbitration against Celcom with the Secretariat of the International Court of Arbitration of the International Chamber of Commerce, Paris.
Pursuant to Clause 13.1 of the conditional sale and purchase agreement (“SPA”) between Telekom and Celcom dated 28 October 2002, in the event any material claims are made against Celcom or any of its subsidiaries or litigation or arbitration proceedings of a material nature are commenced against Celcom or any of its subsidiaries, Telekom shall, in its sole discretion, be entitled to terminate the SPA.
In addition, pursuant to Clause 13.2 of the SPA, in the event Telekom does not exercise its right to terminate the SPA and if damages are awarded against Celcom on completion of the arbitration proceedings taken by DeTe Asia, Celcom shall issue such number of shares equivalent to the amount of such damages awarded (“Adjustment Shares”) to be calculated based on the formula stated in the SPA and in any event not exceeding 100 million new Celcom shares.
Telekom is still of the view that the business combination of TM Cellular and Celcom will enhance shareholder value for both Telekom and Celcom as well as other stakeholders in both companies, including customers of both “TM TOUCH” and “Celcom”.
In view of the above, without prejudice to all of Telekom's rights under the SPA, Telekom has decided to proceed with the Proposed Disposal.
Announcement Info
| Company Name |
TELEKOM MALAYSIA BERHAD |
| Stock Name |
TELEKOM |
| Date Announced |
11 Mar 2003 |
| Category |
General Announcement |
| Reference No |
MM-030311-58186 |