Contents :
The letter dated 31 January 2001, from the Exchange regarding the following sentences appearing in the Business Times, pages 1 and 15, on Wednesday, 31 January 2001 refers :-
(i) "TELEKOM Malaysia Berhad, together with Prism Holdings Ltd of South Africa, will establish a new company called Telekom Technologies Sdn. Bhd. to operate a secure national electronic payment switch here."
(ii) "The move follows Prism's acquisition of 30 per cent of Telekom Applied Business, the information communication technology (ICT) software development subsidiary of Telekom Malaysia, for 30 million rand."
(iii) " Telekom Malaysia Chief Executive Dato' Dr. Md Khir Abdul Rahman... said the tie-up will see Telekom Applied Business positioning itself as a recognised ICT solution provider globally in preparation for its proposed listing on the Kuala Lumpur Stock Exchange second board by 2003."
(iv) "Telekom Applied Business' profits are expected to rise 416 per cent to RM8.1 million in 2001."
Sentence No. (i)
We wish to confirm that Telekom Malaysia Berhad ("TM") will be establishing a new company, known as Telekom Technology Sdn. Bhd. together with Prism Holdings Ltd ("Prism") of South Africa. A full announcement will be officially made to the Exchange, upon the signing of the joint venture agreement between TM and Prism within the week beginning 5 February 2001.
Sentence No. (ii)
We wish to confirm that Prism has acquired 30% equity in Telekom Applied Business Sdn. Bhd. ("TAB"), a subsidiary of TM for a total consideration of RM15 Million. The said consideration is payable in kind by way of grant of technology and licences owned by Prism to TAB, as well as exclusive value added reseller to TAB on all products of Prism. An announcement on the joint venture between TM and Prism in TAB was duly submitted to the Exchange on 31 January 2001.
Sentence No. (iii)
The third sentence above, was incorrectly posted on Prism's website as it was never quoted by the Chief Executive of TM, YBhg Dato' Dr. Md Khir Abdul Rahman. However, listing on the Exchange is a long term objective of TM's subsidiaries.
Sentence No. (iv)
We wish to inform the Exchange that the fourth sentence above is not an official statement made by TM. However, we wish to clarify that the profit after tax (PAT) of TAB for 2001 based on the current business scenario, is projected at about RM8.1 Million, which represent an increase of 125% compared to its PAT in year 2000.
Query Letter Contents :
We refer to the above news article appearing in Business Times, pages 1 and 15,
on Wednesday, 31 January 2001, 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:-
"TELEKOM Malaysia Bhd, together with Prism Holdings Ltd of South Africa, will
establish a new company called Telekom Technologies Sdn Bhd to operate a secure
national electronic payment switch here."
"The move follows Prism's acquisition of 30 per cent of Telekom Applied
Business, the information communication technology (ICT) software development
subsidiary of Telekom Malaysia , for 30 million rand."
"Telekom Malaysia chief executive Datuk Dr Md Khir Abdul Rahman ... said the
tie-up will see Telekom Applied Business positioning itself as a recognised ICT
solution provider globally in preparation for its proposed listing on the Kuala
Lumpur Stock Exchange second board by 2003."
"Telekom Applied Business' profits are expected to rise 416 per cent to RM8.1
million in 2001."
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, including the relevant basis and
assumptions in arriving at the above forecast.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully
LISA LAM
Senior Manager, Listing Operations
LL/ASL/ZOOS
c.c. Securities Commission (via fax)
