Telenor Delays Malaysian Sale

The Malaysian regulators have granted Telenor an extension of the deadline by one year, to 31st December 2007, for the company to sell down its 61% stake in local mobile operator, Digi.com, and to satisfy the 30% Bumiputra shareholding requirement.

The current Bumi shareholding is 10%. Bumiputras were given special rights in the constitution after the Malays agreed to share political power with minorities, including the Chinese, as a prerequisite to gaining independence from British rule. Companies listed on the Kuala Lumpur Stock Exchange (Bursa Saham Kuala Lumpur) must find Bumiputras to take up a minimum 30% of equity to satisfy listing requirements

The requirements to reduce the shareholder were imposed by the Malaysian authorities in 2001 when Telenor acquired a 61% stake in Digi.com. The normal foreign ownership limit for telecoms companies is 49%."

Posted to the site on 14th December 2006