17 November 2009
| Type | Announcement |
| Subject | TELEKOM MALAYSIA BERHAD ANNOUNCES AN INVITATION TO TENDER FOR SECURITIES OF TM GLOBAL INCORPORATED |
| Contents | Telekom Malaysia Berhad (“TM”) wishes to announce that it is inviting holders of securities to tender for purchase by TM for cash of up to USD150 million in aggregate principal amount (the “Maximum Purchase Amount”) on its USD300 million 8.0% Guaranteed Notes due 2010 issued by TM Global Incorporated (a wholly owned subsidiary of TM) and guaranteed by TM (the “2010 Notes”) (XS0121434350), and the USD500 million 5.25% Guaranteed Notes due 2014 issued by TM Global Incorporated (XS0200959384) and guaranteed by TM (the “2014 Notes”, and together with the 2010 Notes, collectively, the “Securities”), through a modified “Dutch Auction” procedure (the “Invitation to Tender”). |
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The 2014 Notes are listed on both the Labuan International Financial Exchange (“LFX”) and Luxembourg Stock Exchange, the 2010 Notes are listed on the Luxembourg Stock Exchange.
TM will select the single highest offer spread so specified as the “Clearing Spread” (that is not greater than the Widest Spread stated below for such series of Securities), to be added to the reference yield, that will result in the single highest tender offer yield, and therefore, the single lowest purchase price for such series of Securities, that will enable TM to purchase Securities up to the Maximum Purchase Amount in aggregate for all two series of Securities. The Widest Spread for each series of Securities is as follows: (i) for the 2010 Notes, 100 bps over UST1 1.00% due October 31, 2011; and (ii) for the 2014 Notes, 125 bps over UST1 2.375% due October 31, 2014; 1 UST: United States Treasury Bond The Invitation to Tender begins on November 17, 2009 and will expire at 4:00 p.m., London time, on November 30, 2009. The Price Determination Date will be at or around 2:00 p.m., London time, on December 1, 2009. The Settlement Date is expected to be December 8, 2009. TM will be announcing the Invitation to Tender on the LFX (in relation to the 2014 Notes only) and the Luxembourg Stock Exchange later in the evening today. The Joint Dealer Managers in respect of the Invitation to Tender are Deutsche Bank AG, Singapore Branch and The Hongkong And Shanghai Banking Corporation Limited. In April 2008, TM undertook a strategic de-merger exercise by separating its domestic interests and its regional interests into two separate businesses. The de-merger resulted in TM retaining its fixed-line voice, data and broadband business while its regional mobile operations were housed under a separate entity. TM’s focus on the domestic market meant that it would no longer require foreign currency borrowings and would have to take steps to minimise its exposure to foreign currency risk. As such, the Invitation to Tender represents an attempt by TM to reduce its foreign currency borrowings as a result of the de-merger. Funds for the acquisition and cancellation of the Securities will come from a combination of TM’s cash reserves and existing Ringgit financing facilities. Further announcement will be made upon completion of the exercise. This announcement is dated 17 November 2009 |
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| Company Name | TELEKOM MALAYSIA BERHAD |
| Stock Name | TM |
| Date Announced | 17 Nov 2009 |
| Category | General Announcement |
| Reference No | TM-091117-66349 |