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Type |
Reply to query |
| Reply to Bursa Malaysia's Query Letter - Reference ID | NM-070403-40550 |
| Subject | Article Entitled: "TM in telco towers deal" |
“Telekom Malaysia Bhd has sold 64 of its landed telecommunications towers in Sarawak to Sacofa Sdn Bhd.””
“Sacofa…paid RM11mil cash as part settlement of the acquisition. The balance will be paid by contra deal through the lease of the towers.”
“Sacofa….would soon buy another 39 TM telecommunications towers…”
We wish to clarify to the Securities Exchange that a policy was issued by the Ministry of Public Utilities, Sarawak on 19 May 2005 which stated that all communication towers or structures that shall be approved for legalisation by the State Planning Authority (SPA) shall be acquired by SACOFA Sdn Bhd (SACOFA), the company appointed exclusively by the Sarawak State Government to build, own, operate and manage all communication towers in the State. This policy is meant to legalise all towers and Grounded Guyed Masts (GGMs) in Sarawak. Celcom (Malaysia) Berhad, a wholly-owned subsidiary of TM owns 20% of the total equity in SACOFA.
In this respect, TM was requested to enter into an agreement to sell the towers and GGMs in Sarawak to SACOFA to be leased back to TM at a value of about RM7 million per year and a service maintenance contract of RM3 million per year.
We wish to confirm that the transfer of 64 tower sites for the first phase was valued at RM11.4 million whilst the second phase, would involve the transfer of an additional 39 tower sites. The agreement between TM and SACOFA is for seven years with options for extension.
The transfer of TM’s telecommunication towers to SACOFA is not expected to have any material financial impact on TM in the current financial year. Apart from Celcom’s 20% equity interest in SACOFA, none of the Directors and major shareholders of TM and/or persons connected to them have any interest direct or indirect in this transaction.
We refer to the above news article appearing in The Star, Starbiz, page B8 on
Tuesday, 3 April 2007, 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:-
"Telekom Malaysia Bhd has sold 64 of its landed telecommunications towers in
Sarawak to Sacofa Sdn Bhd."
"Sacofa...paid RM11mil cash as part settlement of the acquisition. The balance
will be paid by contra deal through the lease of the towers."
"Sacofa...would soon buy another 39 TM telecommunications towers..."
In accordance with the Securities Exchange's Corporate Disclosure Policy, you
are requested to furnish the Securities Exchange with an announcement for
public release confirming or denying the above article and in particular the
underlined sentences after due and diligent enquiry with all the directors,
major shareholders and all such persons reasonably familiar with the matter
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 Securities Exchange with your reply within one (1) market
day from the date hereof.
Yours faithfully
JOHAN ABDULLAH
Head
Listing Division, Group Regulations
TYENMA c.c:- Encik Chung Tin Fah, Securities Commission (via fax)
| Company Name | TELEKOM MALAYSIA BERHAD |
| Stock Name | TM |
| Date Announced | 4 Apr 2007 |
| Category | General Announcement |
| Reference No | TM-070404-67956 |