16 March 2011
| Type | Reply to query |
| Reply to Bursa Malaysia's Query Letter - Reference ID | NM-110315-43470 |
| Subject | MENARA KUALA LUMPUR SDN BHD SIGNS 10 YEAR CONCESSION AGREEMENT WITH THE GOVERNMENT OF MALAYSIA FOR THE OPERATION, MANAGEMENT AND MAINTENANCE OF THE MENARA KUALA LUMPUR ("CONTRACT") |
| Description | We refer to the query from Bursa Malaysia Securities Berhad dated 15 March 2011 regarding the announcement issued by Telekom Malaysia Berhad ("TM") on 14 March 2011 on the above matter [Reference No.: TM-110314-166A4] requiring TM to furnish additional information on the said Contract. |
| Query Letter Contents | We refer to your announcement dated 14 March 2011 in respect of the above captioned matter. In this connection, kindly furnish Bursa Securities with the following additional information for public release :- (i) The value of the Contract. (ii) Whether the Contract is renewable. If so, for how many years. (iii) The effects of the Contract on the earnings per share and net assets per share of Telekom Malaysia Berhad group. (iv) The risks in relation to the Contract. (v) Whether the directors and/or major shareholders and/or persons connected with a director or major shareholder have any interest, direct and indirect, in the Contract and the nature and extent of their interests. Kindly furnish Bursa Securities with your reply within one (1) market day from the date hereof. Yours faithfully TAN YEW ENG Head, Issuers Listing Division Regulation TYE/NMA c.c:- Head, Market Surveillance Department, Market Supervision Division, Securities Commission (via fax) |
|
We are pleased to furnish herewith the following information as requested:-
1. The value of the Contract The maintenance fees payable by the Government to Menara Kuala Lumpur Sdn Bhd (“MKLSB”) in consideration of MKLSB’s obligation to operate, manage and maintain the Menara Kuala Lumpur (“the Tower”) and Tower Land is equivalent to RM60,500,000.00 for a period of ten (10) years from 1 June 2009 until 31 May 2019, which will then be subject for review by the Government. 2. Whether the Contract is renewable. If so, for how many years. There is no provision on renewal in the Contract. 3. The effects of the Contract on the earnings per share and net assets per share of TM Group The Contract is not expected to have material financial impact to TM Group and any effect on either TM Group’s earnings per share or its net assets per share. 4. The risks in relation to the Contract Apart from the normal business and operational risks, there are no major risks in relation to the Contract based on the risks assessment made by MKLSB. 5. Whether the directors and/or major shareholders and/or persons connected with a director or major shareholder have any interest, direct or indirect, in the Contract and the nature and extent of their interests None of the Directors and major shareholders of TM as well as persons connected to them have any interest, direct or indirect, in the transaction. |
|
| Company Name | TELEKOM MALAYSIA BERHAD |
| Stock Name | TM |
| Date Announced | 16 Mar 2011 |
| Category | General Announcement |
| Reference No | TM-110316-35894 |