May 04, 2007 (LBO) – Malaysia Telekom is looking to increase the liquidity of its Sri Lanka unit’s stock, by selling down a small part of its majority stake in Dialog Telekom, the largest mobile operator in the island. “We are constantly looking at all possible options to strengthen the performance of Dialog Telekom,” Malaysia Telekom’s Corporate Affairs Manager, Adeline Ong said when queried on the proposed sale of a part of its 87 percent stake in Dialog.
Market 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.
Ong says the parent is keen to increase the liquidity of Dialog, “so that we [Telekom] can further share the success of Dialog with the people of Sri Lanka.”
Depending on what price Telekom fancies, market analysts are speculating the Malaysian giant may opt for an overseas placement to sell off the small parcel.
Opinion is divided over the price per share, with some analysts pitching it at 30 rupees (28 US cents) while others expect it to go at 21 rupees (19 US cents) a piece.
Shares in Dialog, the most heavily weighted stock on the Colombo exchange and valued at about 1.8 billion