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Time Engineering Bhd had sold 40.3 million shares in unit Time dotCom Bhd (TdC) in the open market for RM20.8mil cash, the company told Bursa Malaysia yesterday.

This equals to a 1.59% stake in TdC. Time, however, did not disclose the timeframe when the transactions took place. The shares were part of the 726.18 million shares, or the 28.69% stake in TdC, held by Time that it had planned to sell.

The company had obtained shareholders’ approval at an EGM on Aug 21, 2009 to sell the shares at no less than 48 sen each. The mandate took effect from the date of the approval until the expiry of its redeemable secured loan stocks (RSLS).

The shares disposed to date were part TdC shares held by Time which have been pledged to Bank Pembangunan Malaysia Bhd (BPMB) as security for the 712.5 million RSLS at nominal value of 48 sen each issued to BPMB on June 11 last year.

“The disposal proceeds will be paid to BPMB for the redemption of the RSLS,’’ it said. Shares in TdC closed was flat at 52 sen yesterday. It was the most active counter with 50.9 million shares transacted.

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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.

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