Telekom Malaysia Bhd will dispose of its entire equity interest in wholly-owned subsidiary, TM Payphone Sdn Bhd, for RM22 million.
In a filing to Bursa Malaysia today, the company said the proposed disposal to Pernec Corp Bhd would streamline Telekom’s operations and focus on its role as a mainstream network facilities and services provider.
It said TM Payphone, under the ownership of Pernec, would operate and maintain a minimum of 60,000 payphones (within a year from completion date) utilising phone lines from the TM group.
As at July 31 2007, TM Payphone has approximately 50,000 payphone sets in operation, it said.
Telekom also said the existing revenue-sharing agreement between the company and TM Payphone would be terminated and superceded by the new telephone lines rental and access termination services agreement to be signed between the two parties for a period of at least five years.
The proposed disposal to be completed by year-end.-Bernama