Telenor To Cut Stake In Malaysia's Digi.com To Below 50%

STOCKHOLM -(Dow Jones)- Norwegian telecom operator Telenor will cut its stake in Malaysia's DiGi.com to below 50% from 61% currently before the end of the year, a company spokesman said Monday.

Cutting the stake is part of an agreement with Malaysia's government, which has demanded that Telenor own less than 50% of the mobile telecom company.

"We have an agreement and we will keep to that," said Telenor spokesman Esben Tuman.

Telenor was originally supposed to cut its stake in Digi.com last year but was granted an extension by the Malaysian government until the end of 2007 before it needed to execute the stake sale.

Tuman said Telenor remains committed to Malaysia and Digi.com even as it cuts its stake in the company.

He said it's too early to determine if Telenor will deconsolidate Digi.com in its accounting.

-By Magnus Hansson, Dow Jones Newswires; +46 8 545 130 91, magnus.hansson@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 10th September 2007