TM REACHES AGREEMENT WITH SAMART CORP PLC: ACQUIRES FULL STAKE IN CASACOM, 24.4% STAKE IN SAMART I-MOBILE PLC (SIM)

Telekom Malaysia Berhad (TM), through its international investment-holding arm TM International Sdn Bhd (TMI), reached agreement with Thailand’s Samart Corp Plc (Samart) to acquire the latters’s 49% stake in Cambodia Samart Communications Co Ltd (Casacom). The move, which elevates Casacom to the status of a wholly owned TM subsidiary, involves a consideration of USD29 million.

In a related move, TMI also acquired a 24.4% stake in Samart subsidiary Samart I-Mobile Plc (SIM) for a consideration of approximately USD32.8 million (TBH 1,312.5 million). SIM, a majority owned Samart subsidiary, provides instant wireless information services and mobile content, apart from distributing mobile telephones and accessories.

The Share Sale and Purchase Agreements governing both acquisitions and other related agreements were executed today at a signing ceremony in Bangkok. TMI Director Dato’ Lim Kheng Guan signed on behalf of the company while Samart was represented by its President Thavatchai Vilailuck. Also in attendance were TMI CEO Yusof Annuar Yaacob and Samart Executive Chairman/CEO Charoenrath Vilailuck.

Both acquisitions are seen as a first step towards a repositioning of TM’s business partnership with Samart. Through TMI, TM currently has a 19.24% stake in Samart.

“Samart Corp and TM have been keen partners since June 1997. These recent moves are testimony to the long standing nature of that relationship and our commitment to it,” said TM Group CEO Dato’ Abdul Wahid Omar.

The move reaffirms TM’s strategy of focusing on its operations closer to home as well as its intention to increase its participation in the Cambodian telecommunications industry, he added. TM’s interest in Casacom was formalized in May 1998. The company runs a GSM900 service and had 157,000 subscribers as at end 2005. Cellular penetration in Cambodia is expected to grow from 6.5% to 8.5% in 2006, whilst Casacom’s market share is expected to grow from current level of 17.5% to 30% this year.

The SIM acquisition foresees cooperation between SIM and TMI in the provision of handsets , development of customized handsets, and rollout of content and applications to subscribers. Currently, the sale of mobile phones is SIM’s single largest revenue contributor, he added.

Meanwhile, Samart Executive Chairman and CEO, Charoenrath Vilailuck stated that “TM is a key, long-term strategic partner of Samart. Aside from sharing the same vision, we possess combined capabilities and business expertise that support each other, for instance, mobile business expansion and mobile content and applications service provision that effectively serve consumers’ demand”.


About TM
Telekom Malaysia Berhad (TM), a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies on Bursa Malaysia with an operating revenue of more than RM13 billion, TM is driven to deliver value to its stakeholders in a highly competitive environment.

The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 12 countries around Asia and globally, TM is focused on achieving sustainable growth in both the local and international markets.

For further information on TM, visit www.tm.com.my.


About TM International Sdn Bhd
Through its investment-holding arm, TM International, TM is one of the leading regional telecommunications companies with interests in Sri Lanka, Bangladesh, Pakistan, Indonesia, Singapore, Thailand and Cambodia.

TM International has a track record of adding value to its investments, and an approach which focuses on developing the skills and capabilities of its local management teams and working in partnership with these local teams to achieve strong market positions and profitability.

TM’s overseas investments have always contributed significantly to the Group’s overall PATAMI. For the nine months ended September 2005, TM’s overseas investment contributed 10.8 per cent or RM1.1 billion to the Group revenue. PATAMI contribution was 21.2 per cent or RM261.5 million to Group’s PATAMI.

For further information on TM International, visit www.tm.com.my.


About Samart Corporation Public Company Limited
From a single company established more than 50 years ago, Samart has evolved into a group comprising more than 20 companies. Together the group offers a complete range of interactive and integrated Information Communications Technology Solutions & Services to satisfy the demand of its customers, both individual and corporate clients.

For further information on SAMART, visit www.samartcorp.com

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