Time dot com sold 27 mil shares of Digi
Filed Under (Business News) by Webmaster on 27-08-2009
Tagged Under : DIGI, Time dot com
Time dotCom Bhd (TdC) yesterday disposed of 27.75 million DiGi.Com Bhd shares for RM604.95mil or RM21.80 per share.
In a filing with Bursa Malaysia yesterday, TdC said its unit Hakikat Pasti Sdn Bhd had disposed of the shares.
Prior to the disposal, TdC and its subsidiaries held in aggregate 55.25 million DiGi shares, representing 7.1% of the issued and paid-up capital of DiGi as at Aug 18.
Of these, 27.75 million were held by Hakikat Pasti and the remaining 27.5 million by TT dotCom Sdn Bhd, another wholly-owned subsidiary of TdC.
Following the disposal, the TdC group now owns 27.5 million DiGi shares, representing about 3.5% equity interest in DiGi.
TdC said the sale price of RM21.80 per DiGi share was determined on a willing buyer-willing seller basis through a private placement exercise.
It represents a discount of 0.9% to the five-day volume weighted average market price of DiGi shares up to and including Aug 25 of RM22.
“The original cost of investment for the disposal shares was RM597.22mil or RM21.52 per DiGi share,” it said.
Earlier this year, Hakikat Pasti had disposed of 22.5 million DiGi shares for RM463.5mil cash.
TdC said since it first held the disposed shares in November 2007, the group had received an aggregate net dividend income of RM68.27mil, or RM2.46 per share.
“The net proceeds from the disposal of RM602.6mil will be utilised to repay the bank borrowings of the TdC group estimated at RM552.7mil and the balance for working capital purposes,” TdC said.
The disposal will result in an estimated gain on disposal of RM5.33mil to the TdC group for the financial year ending Dec 31.
The company expects to enjoy pre-tax interest savings estimated at RM23.4mil per annum, going forward, as a result of the full repayment of bank borrowings with the net proceeds from the disposal.
However, it will no longer enjoy any future dividends declared on the disposed shares.
