ARTICLE ENTITLED : "Khazanah-Sapura to buy 30% of TIME dotCom"
| TIME ENGINEERING BERHAD |
| Type | Reply to query |
| Reply to Query Letter by KLSE reference ID | ZO-000705-35496 |
| Subject | ARTICLE ENTITLED : "Khazanah-Sapura to buy 30% of TIME dotCom" |
Contents :
We refer to the Exchange's query letter dated 5 July 2000 in respect of the abovesaid article appearing in the Star, Business Section, page 1 on Wednesday 5 July 2000.
As announced in a separate statement to the Exchange, the Company had entered into a Share Sale Agreement with Khazanah Nasional Berhad ("Khazanah") on 8 July 2000 for Khazanah to acquire up to 30% equity interest in TIME dotCom Berhad. Details of the sale transaction will be released by our merchant bankers this evening.
The Company is not in a position to comment on the statement relating to Sapura's participation.
Query Letter Contents :
We refer to the above news article appearing in The Star, Business Section,
page 1, on Wednesday, 5 July 2000, a copy of which is enclosed for your
reference.
In particular, we would like to draw your attention to the underlined sentences
which are reproduced as follows:-
"Under the arrangement, Khazanah has valued Time dotCom at RM7.1bil, which is
lower than the RM8.3bil which Singapore Telecommunications Ltd (SingTel) was
prepared to pay for stakes in three companies within the Time group."
"Based on the Khazanah valuation, the government investment agency would have
to pay about RM2.1bil for the 30% stake in Time dotCom."
"However sources told Star Business that Sapura would take a 7.5% stake in Time
dotCom through a debt-equity deal with Khazanah whereby it would transfer its
RM495mil loans (including interest) in the Time group to Khazanah, which would
then have to fork out RM1.55bil in cash for its 22.5% portion."
"... Sapura had received an understanding from Khazanah that it could exercise
the option to buy over Khazanah's 22.5% stake in Time dotCom on a cost-plus
formula sometime in the future."
"Assuming that Time agrees to sell 30% of Time dotCom to Khazanah-Sapura, Time
would retain about 53.5% of the company."
"It is understood that Sapura would also be looking out for a foreign
technology partner for Time dotCom."
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentences after due and diligent enquiry with all the directors,
substantial shareholders and all such other persons reasonably familiar with
the matters about which the disclosure is to be made in this respect. In the
event you deny the above sentences or any other part of the above reported
article, you are required to set forth facts sufficient to clarify any
misleading aspects of the same. In the event you confirm the above sentences or
any other part of the above reported article, you are required to set forth
facts sufficient to support the same.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE
LISA LAM
Senior Manager, Listing Operations
LL/KLL/ASL/ZOOS
c.c. Securities Commission
Announcement Info
| Company Name | TIME ENGINEERING BERHAD |
| Stock Name | TIME |
| Date Announced | 10 Jul 2000 |
| Category | General Announcement |
| Reference No | TE-000710-44286 |