Large Deal

May 16, 2007 (LBO) – Telekom Malaysia is planning to sell about seven percent of its share in its Sri Lankan subsidiary but would be buying into a rights issue of Dialog Telekom, irrespective of whether a sell down happens or not, an official said. "We are looking at the possibility of selling down seven percent. However, we shall not bring our shareholding down to less than 80 percent," Telekom Malaysia's International spokeswoman Adeline Ong said when queried on the proposed sell down of its 87 percent stake in Dialog.

Colombo-based telecom analysts viewed Telekom's decision as a move to appease overseas investors who have in the past complained about the lack of liquidity in the counter.

Talk among Colombo's small investment community has centered around a possible overseas placement by the Malaysian giant, a possibility Ong does not rule out either.

"We are currently working out and finalising the details," she says when asked if the parcel will be placed among overseas investors.

Depending on what price Telekom expects, Colombo-based equity analysts are speculating the Malaysian giant may sell at 30 rupees (28 US cents) a share, while others expect the deal to go through at 21 rupees (19 US cents) a piece.

Dialog rece