Singapore buys into Malaysia telco
|
Singapore's Temasek has taken a 5 percent stake in Telekom Malaysia.
Story Tools
YOUR E-MAIL ALERTS
|
Follow the news that matters to you. Create your own alert to be notified on topics you're interested in.
Or, visit Popular Alerts for suggestions.
|
|
KUALA LUMPUR, Malaysia (Reuters) -- Malaysia says it has sold a nine percent stake in dominant telephone firm Telekom Malaysia for $766 million to a group of offshore investors that includes Singapore's Temasek.
In the latest sign of warming ties between the two neighbors, Singapore's state investment agency Temasek Holdings said it had bought 165 million shares, or a five percent stake, in Telekom Malaysia for 1.6 billion ringgit ($421.2 million) from state investment arm Khazanah Nasional.
Analysts said the purchase underscored the improving relations between the two governments since Prime Minister Abdullah Ahmad Badawi took office in November, succeeding the combative Mahathir Mohamed.
The Telekom purchase is the first big piece of a Malaysian asset to be acquired by the Singapore agency, which has been on a buying spree of banking and telecom companies in the region.
Temasek spokeswoman Eva Ho said the stake purchase amounted to slightly more than five percent of the Malaysian telephone company.
Khazanah Nasional sold nine percent of Telekom for 2.91 billion ringgit. The price equals 9.70 ringgit per share, a 1.5 percent discount to its closing price of 9.85 ringgit on Monday. Shares rose 1.5 percent to 10 ringgit on Tuesday.
"It is quite significant. It is a big chunk and more than half the placement by Khazanah. It must have had the blessing of the ruling party," said Seah Hiang Hong, research chief at Kim Eng Research.
Khazanah held 1.08 billion shares representing a 33 percent stake in the phone company before the sale.
Temasek owns large stakes in most of Singapore's biggest listed and unlisted businesses including Singapore Telecommunications, DBS Group Holdings and Singapore Airlines.
Headed by Executive Director Ho Ching, who is also wife of Deputy Prime Minister Lee Hsien Loong and daughter in law of Senior Minister Lee Kuan Yew, the agency aims to grow Singapore companies into global players.