Telenor Reduces DiGi Stake

Telenor has reduced its stake in Malaysian subsidiary DiGi to comply with the 49% equity ownership requirement of the Malaysian Government

November 14, 2007

1 Min Read

OSLO, Norway -- Telenor ASA on Wednesday reduced its stake in Malaysian subsidiary DiGi.COM Bhd ("DiGi") in order to comply with the 49 per cent equity ownership requirement of the Malaysian Government.

In a book building exercise Telenor on Wednesday sold 76.5 million shares in DiGi, constituting 10.2 per cent of the total issued share capital, at RM 21.5 per share to Malaysian investors for a total of RM 1,612.5 million (approximately NOK 2.6 billion).

DiGi announced earlier Wednesay that it has signed a heads of agreement for a strategic alliance with Time dotCom Berhad ("Time"), a company listed on the Malaysian Stock Exchange. The agreement between Time and DiGi will, among other factors, entail a transfer of Time's 3G licence to DiGi for a total consideration of 27.5 million new DiGi shares. After the issuance of 27.5 million new ordinary DiGi shares for Time's 3G spectrum, Telenor will have a 49 per cent ownership in DiGi. The transfer of the 3G licence is subject to regulatory approval and is expected to be completed during the first half of 2008.

"We have reduced our equity stake in DiGi by selling to Malaysian investors. DiGi is a fully-fledged member of the global Telenor Group and plays an important role in the Group's future plans. The company will still remain consolidated and Telenor will continue to be the industrial driving force behind DiGi," said Mr. Arve Johansen, Deputy Chief Executive Officer and Head of Region Asia, Telenor.

Telenor Group (Nasdaq: TELN)

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