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Telekom Malaysia (TM) Indian Affiliate Spice Communications Receives IPO nod, Targets End June Offer Date

2007-06-19

19 Jun 2007, Kuala Lumpur -- Telekom Malaysia Berhad (TM) announced today that its Indian affiliate, Spice Communications Limited (Spice) has received necessary approvals for a listing of its shares on the Bombay Stock Exchange (BSE). The target offering date is between 25-27 June 2007, TM Group Chief Executive Officer Dato' Abdul Wahid Omar told a media briefing at the CommunicAsia 2007 regional exhibition and conference in Singapore.

Spice Communications Ltd. (Spice), the second largest cellular services provider in Punjab and fifth largest cellular services provider in Karnataka, is entering the capital market with a Public Issue of 113,111,111 equity shares of Rs. 10 each through a 100% Book Building Process. The price band for the Issue has been fixed between Rs. 41 and Rs. 46 per equity share, Dato Wahid stated.

The company recently concluded a pre-IPO placement of 24,873,889 shares at Rs 45 per share, thereby raising about Rs 112 crore (US27.6 million). The total number of new equity shares on issue is 137,985,000, representing 20% of the post-issued paid-up share capital, he further added.

Spice filed the Draft Red Herring Prospectus (DRHP) to Securities and Exchange Board of India (SEBI) on 19 February 2007. The company received comments from SEBI on 21 May 2007, followed by the necessary approval soon thereafter.

TM has a 49% stake in Spice through TMI India Limited, a wholly-owned subsidiary of TM's international investment holding company, TM International Sdn Bhd. The remaining 51% is with Modi Wellvest Private Limited (MWPL) a promoter of Spice. With the issue of IPO shares, current shareholding of both MWPL and TM will be diluted to 40.8% and 39.2% respectively.

According to Dato' Wahid, the proceeds of the IPO are expected to be utilised for the following purposes - repayment of debt, payment for recently acquired National and International Long Distance (NLD/ILD) licences fees and its related capital expenditure, and business expansion in the current two circles it operates in i.e. Karnataka and Punjab.

Spice had received the licences for the NLD / ILD services from the Department of Telecom (DOT) on 11 May 2007. Its application for licences in 20 circles, as part of its pan-Indian strategy, remains pending.

Spice commenced operations in 1997 as a cellular services provider in the states of Punjab and Karnataka in India. As at 31 March 2007, Spice is the second largest cellular services provider in Punjab and fifth largest cellular services provider in Karnataka in subscriber terms (based on data compiled by the Cellular Operators Association of India, COAI). On a combined basis, Spice has a market share of 14.3% in these states.

The customer base consists of approximately 2.73 million subscribers as of 31 March 2007, comprising approximately 1.92 million pre-paid subscribers and approximately 0.53 million post-paid subscribers. Both these states are recognised as major economic hubs of India, with Punjab enjoying the highest per capita income in the country, and Karnataka (whose major city is Bangalore) known as the "Silicon Valley" of India.

About TM

Telekom Malaysia Berhad (TM), a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies on Bursa Malaysia with an operating revenue of more than RM16 billion, TM is driven to deliver value to its stakeholders in a highly competitive environment.

The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 13 countries around Asia and globally, TM is focused on sustainable growth in both the local and international markets.

On the Corporate Social Responsibility (CSR) front, the Group has always been a major corporate contributor towards responsible activities in the belief that these practices are a fundamental tenet of good corporate governance. The Group promotes 3 major platforms i.e. education, sports development and community/nation-building. Under education, TM has spent some RM800 million to develop Multimedia University into one of the top universities in Malaysia with more than 20,000 students. TM has also provided scholarships to over 10,000 graduates pursuing academic programs locally and overseas. On the sports front, TM is actively contributing towards the upliftment of football at all levels while under the community/nation-building platform, the Group contributes towards causes that bring value to the community and nation at large.

For further information on TM, visit www.tm.com.my.