We wish to announce that Celcom, a wholly-owned subsidiary of Axiata, had today entered into a Memorandum of Understanding (“MOU”) with TM, on strategic collaboration in providing fixed and mobile solutions.
Under the terms of the MOU, Celcom and TM (“Parties”) shall collaborate in the following services (“Services”):-
- High Speed Broadband (“HSBB”) services comprising HSBB (Access), HSBB (Transmission) and Internet Connectivity Services for Celcom subscribers;
- Digital Subscriber Line Access (DSL) Services for Celcom subscribers;
- Fiber Network System via Wholesale Long Term Lease for Celcom network; and
- Mobile Virtual Network Operators Services to TM.
Under the terms of the MOU, the Parties shall collaborate and work together to determine the viability of the Services in the Parties’ best interests which context shall take into consideration return on investment from the implementation of the Services.
The MOU is valid for a period of 1 year until definitive agreement(s) is entered into by the Parties or extended or terminated as provided in the MOU. The MOU further stipulates that the Parties shall endeavour for definitive agreement(s) to be executed within 2 months from the date of the MOU.
Khazanah Nasional Berhad (“Khazanah”), a major shareholder of Axiata is deemed to have an interest in the MOU by virtue of Khazanah being a major shareholder of TM, holding 33.23% of its issued and paid-up share capital. Tan Sri Dato’ Azman Hj. Mokhtar and Dr. Farid Mohamed Sani are Khazanah’s representatives on the Board of Directors of Axiata. Dr Farid is also a Member of the Board of Directors of both Celcom and TM (Alternate Director). Tan Sri Dato’ Azman and Dr. Farid have abstained and will continue to abstain from all deliberation and voting in relation to the MOU.
Save as disclosed above, none of the major shareholder and/or Directors of Axiata and/or persons connected to them have any direct or indirect interest in the MOU.
Further update including financial effect and other relevant information will be disclosed when the definitive agreement(s) with regard to the Services have been entered into between the Parties.
The Board of Axiata (with the exception of Tan Sri Dato’ Azman and Dr. Farid, who have abstained) is of the opinion that the entry into the MOU is in the best interest of Axiata Group.
This announcement is dated 22 February 2011.
