Business

Wednesday November 18, 2009

TM acquiring TM Global securities


KUALA LUMPUR: Telekom Malaysia Bhd (TM) is acquiring securities issued by TM Global Inc for cash of up to US$150mil.

In a statement to Bursa Malaysia yesterday, TM said it was inviting securities holders to tender their US$300mil 8% Guaranteed Notes due 2010 and US$500mil 5.25% due 2014.

TM Global is a wholly-owned subsidiary of TM.

“The invitation to tender represents an attempt by TM to reduce its foreign currency borrowings as a result of the de-merger,” it said.

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,” TM said.

The 2014 Notes are listed on both the Labuan International Financial Exchange and Luxembourg Stock Exchange, while the 2010 Notes are listed on the Luxembourg Stock Exchange.

The invitation to tender begins yesterday and will expire at 4.00pm, London time, on Nov 30, 2009.

The price determination date will be at or around 2.00pm, London time, on Dec 1, 2009 while the settlement date is expected to be Dec 8, 2009.

The joint dealer managers are Deutsche Bank AG, Singapore Branch and The Hongkong and Shanghai Banking Corp Ltd.

“Funds for the acquisition and cancellation of the securities will come from a combination of TM’s cash reserves and existing ringgit financing facilities,” the statement said. — Bernama

 
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