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TM Sells Stake In Telekom Networks Malawi To MTL Mobile Limited

2007-04-10

10 Apr 2007, Blantyre -- Telekom Malaysia Berhad (TM), formerly the majority shareholder in Telekom Networks Malawi Limited (TNM), and Malawi Telecommunications Limited (MTL) the current holder of the remaining 40 percent shareholding in TNM, today announced the sale by TM of its total 60 percent stake in TNM to MTL Mobile Limited, a company incorporated by MTL to facilitate the acquisition. MTL, through its direct and indirect holdings of shares, is now the majority shareholder of TNM.

The sale has been concluded following the receipt of all regulatory approvals, including those of the Malawi Communications Regulatory Authority (MACRA) and the Reserve Bank of Malawi.

TNM was established in 1996 as a joint venture between TM and the then government-owned MTL, with TM holding 60 percent equity and MTL the remaining 40 percent. TNM operates a GSM service under a license valid until 2014. TM's interest in Malawi was overseen by its overseas investment arm, TM International.

In early 2005, TM officially explained that it had initiated exit plans from Malawi through TM International, as part of a broader reorientation of its international investment strategy to focus on geographic regions closer to home. It was explained that the first part of that strategy was illustrated by the sale of its investment in Telkom SA in the second half of 2004 (duly completed in November 2004), to be followed by its other African interests in Malawi.

TM International Chief Executive Officer Yusof Annuar Yaacob said: "In the twelve years that TM has been involved in the Malawian market, it has worked with both the government as well as the people of Malawi to build a network that delivers reliable and affordable services to the people of Malawi. We are proud that to-date TNM has over 300,000 active cellular subscribers and continues to enjoy robust growth.

TM's objective has been to divest its interest in TNM responsibly so that the people of Malawi continue to be provided with excellent service. We are of the opinion that MTL is eminently well-placed to continue this task", he added.

Speaking on behalf of MTL, Dr. Mathews Chikaonda, Group Chief Executive of Press Corporation Limited, the majority shareholder in MTL said: "Our immediate task is to expand the network, building on the existing solid foundation, to meet the increasing demand for TNM's services as experienced in the past year.

A new corporate identity has been prepared and will be launched within the course of the next two months. A new service delivery platform is being installed and will facilitate the provision of a lot more products. As we expand the capacity of the core network, we will further strengthen it by replacing several redundant facilities at key sites to minimise the possibility of service disruption", he added.

About TM

TM, an emerging leader in Asian communications, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies in Malaysia with a market capitalisation of USD8.38 billion, TM delivers value to its stakeholders in a highly competitive home 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 achieving sustainable growth in both the local and international markets.

TM has interests in nine key markets within Asia - Indonesia, Singapore, Cambodia, Thailand, Bangladesh, Pakistan, India, Sri Lanka and Iran. TM has an impeccable track record of adding value to its investments, working closely with its subsidiaries to achieve strong market positions and profitability.

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