Tuesday, September 21, 2010

TM ... Sep10


It had accepted Measat Global Network Systems Sdn Bhd’s (MGNS) offer to acquire TM’s 60.02 million shares in Measat Global Bhd for a total of RM252.1 million.

TM, the second largest shareholder in Measat, held a 15.39% stake in Measat. 

Measat’s largest shareholder is MGNS, which is owned by tycoon T Ananda Krishnan, with a 59.56% stake. With acceptance from TM, MGNS would be holding about 75% of Measat and clears any doubts on the privatisation of the satellite services provider.

The proceeds from the disposal would be used for its working capital requirements. The disposal provides an opportunity for TM to monetise its investment and would contribute positively to the earnings and net assets of the TM Group for the financial year ending December 31, 2010.

Meanwhile industry observers say Telekom Malaysia has the capacity to return cash above its minimum dividend policy of RM700 million per annum.

This was based on TM’s healthy cash pile of RM3.6 billion (at end-June 2010); 2) comfortable gross debt/EBITDA of 2.3x; 3) its 200 million Axiata shares, which would raise another RM900 million; and 4) proceeds from Measat’s privatisation.

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