Sept 28, 2007 (LBO) – Sri Lanka’s Dialog Telekom celco’s Malaysian parent, Telekom Malaysia, has announced the spin off of its mobile phone business into a separate firm to realize its full value and focus on expansion, news reports said Friday. The new unit, TM International, worth 8.2 billion dollars, would be the holding company for Celcom (Malaysia) Bhd., Telekom’s domestic cellular business, and units in countries including Sri Lanka and Indonesia, Bloomberg news said.
It quoted a statement from the Kuala Lumpur-based Telekom, Southeast Asia’s second-biggest telecommunications company, as saying the spin off separates the slower-growing fixed-line business, and allows the value of mobile business to be fully realized.
Telekom Malaysia has been selling down its stake in the Sri Lankan operation this year to realize a part of its value.
The firm sold a tranche of D last week to the International Finance Corporation.
Earlier in the year Telekom sold Dialog stock to finance a cash call by the subsidiary.
Telekom, Malaysia’s largest phone company, in July said it will be a challenge to meet a 10 percent sales growth target this year as expansion tapers off in Malaysia.
Telekom wants to “let investors look at it on