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Acquisition Of PT VADS Indonesia, A Local Subsidiary In Indonesia

22 June 2009

Type Announcement
Subject ACQUISITION OF PT VADS INDONESIA, A LOCAL SUBSIDIARY IN INDONESIA
Contents
[A] INTRODUCTION

Telekom Malaysia Berhad (“TM”) wishes to announce that its wholly owned subsidiary, VADS Berhad (“VADS”) has received notification from its Indonesian legal advisors, on Friday evening, 19 June 2009 (i.e after close of trading hours), on the official approval from the Indonesian Ministry of Law and Human Rights (“MLHR”) dated 30 April 2009 on the establishment of PT VADS Indonesia (“PT VADS”), VADS local subsidiary in Indonesia.
[B] INFORMATION ON PT VADS
With this MLHR approval, PT VADS is a validly established legal entity in Indonesia with effect from 30 April 2009, being the date of MLHR letter. Hence, the acquisition by both VADS Business Process Sdn. Bhd. (“VBP”) and VADS of the ordinary shares in PT VADS (as detailed in the table below) is made official (“the Acquisition”) under the Indonesian laws.

The following are pertinent information of PT VADS:

1 Principal Activity : Provision of Business Process Outsourcing (BPO) services, including managed contact centre services in Indonesia
2 Authorised Share Capital : Rp. 68,211,000,000 (equivalent to USD 5,720,000) divided into 5,720,000 ordinary shares of Rp. 11,925 (equivalent to USD 1 each)
3 Paid-up Share Capital : Rp. 17,052,750,000 (equivalent to USD 1,430,000) divided into 1,430,000 ordinary shares of Rp. 11,925 (equivalent to USD 1 each)
4 Shareholders :
  • VBP (90%) holding 1,290,000 shares with a total nominal value of Rp. 15,383,250 (equivalent to USD 1,290,000)
  • VADS (10%) holding 140,000 shares with a total nominal value of Rp. 1,669,500 (equivalent to USD 140,000)

[C] RATIONALE

PT VADS was established to undertake the expansion of VADS Group’s BPO business to Indonesia. PT VADS is presently managing the contract awarded by PT Excelcomindo Pratama Tbk. ("XL") for the outsourcing of XL’s contact centre at an estimated contract value of RM104,037,000 (VADS’ announcement dated 4 November 2008 is referred).


[D] FINANCIAL EFFECTS

The Acquisition is not expected to have any material impact on the consolidated earnings, net tangible assets, share capital and substantial shareholder's shareholdings of TM for the financial year ending 31 December 2009.


[E] DIRECTORS' AND SUBSTANTIAL SHAREHOLDER'S INTEREST

None of the Directors and major/substantial shareholder and/or persons connected to the Directors and major/substantial shareholder have any interest, either direct or indirect, in the Acquisition.


[F] STATEMENT BY DIRECTORS

The Board of Directors is of the opinion that the Acquisition is in the best interest of the Group.


This announcement is dated 22 June 2009.

Announcement Info

Company Name TELEKOM MALAYSIA BERHAD
Stock Name TM
Date Announced 22 Jun 2009
Category General Announcement
Reference No TM-090622-59785