Telekom Confirms Exit Plans for Guinea Venture

Telekom Malaysia has confirmed that it has decided to completly withdraw from the Guinea market where the company had been operating the local landline and mobile phone network, Societe des Telecommunications de Guinee (Sotelgui.). TM will continue to have Board representation in Sotelgui and the Board will oversee the new management, until all other exit-related issues including equity transfer are finalised.

"In a joint decision taken with senior Government of Guinea (GoG) officials, TM has decided to cease all operational and managerial control of Sotelgui as the initial step to our total exit from Guinea. In the interest of the strong relations between both countries, both parties are focused on an expeditious and smooth handover of operational responsibility to Guinean representatives," said Yusof Annuar Yaacob, Chief Executive Officer of TM International.

TM's investment in Guinea commenced on 23 December 1995 with the signing of a Joint Venture Agreement with the Government of Republic of Guinea. The joint venture was for the 60% stake in Sotelgui which TM currently holds, with the remaining 40% being held by the government. TM initial investment was for US$45 million.

As at September 2005, Sotelgui had over 161,800 active subscribers."

Posted to the site on 16th December 2005