Telekom Malaysia says it is reviewing its 12% stake in South Africa`s Telkom. The South East Asian group issued the statement today in response to media reports there that it was planning to sell the stake.
Reuters reports that Telekom Malaysia was responding to a report in the Asian Wall Street Journal, which said yesterday that the group planned to raise about $400 million (R2.6 billion) to $600 million (R3.9 billion) through the sale.
Telekom Malaysia`s statement said that based on the current South African rand exchange rate and Telkom`s share price, its stake in Telkom was valued at about $800 million.
The stake is held through the Thintana group, a consortium that has a 30 percent interest in Telkom. US firm SBC Communications Inc is the largest member of the consortium.
"As such, any potential disposal will take into consideration agreement with its partner, SBC, and market conditions," Telekom said.
The possible sale of Telekom Malaysia`s stake could be related to its planned purchase of a 49% stake in India`s largest mobile phone company, Idea Cellular, along with Singapore Technologies, in a deal that could be worth more than $500 million.
An alternative to funding this purchase would be for Telekom Malaysia to raise international bonds.
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