TM Exits From Its Investment In Sotelgui s.a

TM and the Government of Guinea concluded the sale of TM’s 60 per cent stake in Societe des Telecommunications de Guinee (Sotelgui) to the Government of Guinea on 27 August 2008 further to an agreement of both parties.

TM first invested in Sotelgui in 1995 through the acquisition of 60 percent of the shareholding, the Government retaining the remaining 40 percent. Sotelgui operates a fixed line and cellular, GSM service in the Republic of Guinea.

In December 2005, TM announced that it had initiated exit plans from Guinea, as part of a broader reorientation of its international investment strategy to focus on geographic regions closer to home. The first part of this strategy was illustrated by the sale of TM’s investment in Telkom SA in 2004 which was soon followed by its other African interests.

In line with TM’s exit plans and after informing the Government of Guinea that TM’s decision to divest the Guinean investment was part of a broader strategic decision to divest all its African investments, TM handed over all operational and managerial control of Sotelgui to the Government in late 2005 as an initial step to its total exit from Guinea. Nevertheless, TM still continued to have Board representation in Sotelgui to ensure that all other exit-related issues including equity transfer were finalized smoothly.

“As both countries enjoy strong and cordial relations, both parties were focused on a prompt and efficient handover of operational responsibility to the Guinean representatives. And today we are very pleased that the sale has been finally concluded with agreement from both parties. Sotelgui was the last remaining TM investment in the African region, said Datuk Bazlan Osman, Group Chief Financial Officer of TM.

"I am very pleased about the terms of the settlement which preserves the interests of the Republic of Guinea" said Ousmane Doré, Minister of Finance of the Republic of Guinea.

"I thank TM for its contribution to the development of telecommunications in Guinea and for its spirit of cooperation throughout the separation process" added Tibou Kamara, the Minister of Communication and New Information Technologies.

In short, the Guinean delegation on behalf of the Head of State, General Lansana Conté, the Prime Minister and the Government of Guinea, is pleased about the happy conclusion of the negotiations between TM and the Republic of Guinea in relation to the partnership with Sotelgui. The Guinean delegation has emphasized the need to pursue cooperation with Malaysia by exploring other investment opportunities and reinforcing the Malaysian presence in Guinea. Guinea, open to the world, favours partnership with countries from the South and any nation sharing the same history and values.