KUALA LUMPUR, Sept 22 (Bernama) — Telekom Malaysia Bhd (TM) has proposed to privatise its unit VADS Bhd.
TM holds approximately 63.3 percent interest in VADS.
The privatisation exercise is expected to be completed within the first half of 2009.
In a filing to Bursa Malaysia today, TM said to facilitate the proposal, TM among others, will nominate and procure a wholly-owned subsidiary to provide an interest-free advance of up to RM417.3 million to VADS to fully/partially fund the proposal.
“As part of TM’s strategy for growth and earnings enhancement, the privatisation of VADS will accord the TM group greater flexibility to streamline its businesses to maximise synergies and cost-saving benefits,” TM said.
It is also expected to allow the TM group to better serve its range of customers, particularly in the enterprise segment.
The principal activities of VADS group are the provision of managed network services, systems integration services and contact centre and related services.