Telekom Malaysia has disassociated itself from the 60% stake in the Sotelgui, to the government of Guinea for a token amount of just $1.
The government will also be paying $2.04m to Telekom Malaysia in settlement of outstanding debts.
Telekom Malaysia, will incur a total loss of $25m from the divestment.
Datuk Bazlan Osman, CFO at Telekom Malaysia, said: “Both parties were focused on a prompt and efficient handover of operational responsibility to the Guinean representatives. And today we are very pleased that the sale has been finally concluded with agreement from both parties. Sotelgui was the last remaining Telekom Malaysia investment in the African region.”
Wireless Federation » archive for 'Sotelgui'
Telekom Malaysia divests it’s 60% stake in Sotelgui (South Africa)
- September 2nd, 2008
- 11:46 am
Sotelgui to get 60% stake of Telekom Malaysia (Guinea)
- August 13th, 2008
- 11:27 am
Telekom Malaysia gives consent over selling its 60% stake in Guinea operator Sotelgui to the Guinea government. The government already holds 40 percent in the national operator and took over management of the company in 2005. In 1995 TM first invested in Sotelgui and proclaimed in 2005 plans to sell the holding. TM is selling the stake for a token price of $ 1, while the government has also agreed to pay debts of $2.04 million toTM. Value of the stake to $1 was already written down, but it will also make a currency exchange loss of MYR 82 million on the deal.The Guinea government is expected to prepare the operator for a new privatisation, after the completion of deal.
