Tuesday, February 23, 2010


On September 28, 2007, TM announced a revamp of its corporate structure, de-merging its fixed-line and mobile businesses into two separate companies: "FixedCo" and "RegionCo". FixedCo will comprise its domestic fixed-line business, internet service provider and other ancillary businesses. RegionCo will comprise Celcom, its domestic cellular operator, and all of its international operations. The de-merger exercise is scheduled to be completed by Q1 2008 and both FixedCo and RegionCo will be listed on Bursa Malaysia by June 2008.[4][5]

On December 10, 2007, TM announced a special dividend amounting to RM 1.6 billion to its shareholder. TM further added that after the demerger, Fixed Co. will adopt a dividend policy of a minimum RM700mil or up to 90% of normalized net profit, whichever is higher.[6]

On April 11, 2008, Telekom Malaysia announced that TM International will be listed on the Bursa Malaysia by April 28, 2008.[7] TM International is renamed as Axiata Group Berhad in May 2009.

Dialog Telekom customer base as of end 2008 was 5.5 millions

(The above article is an excerpt from Wikipedia)

As at 31.12.2009, the key statistics of TM are as follows:

Share Capital: 3,5343m. Total capital and reserve: 6,987.5m. Par value per share: RM1. Borrowings: 6,713.2m Cash & Cash Balances: 3,249m. Current assets: 6,180. Current liabilities: 4,441m. EPS: 18.30. Net assets per share: RM1.92. Last done price: RM3.35 per share.

TM has just announced a final dividend of 13 sen per share. Whether this is tax free or not, is not known yet. Earlier, it has paid an interim dividend of 10 sen per share. TM is paying more than it earns. Is this a reflection that it is confident of its future earnings? Of interest is that TM has a dividend policy of paying out RM700 million or 90% of its normalized earnings yearly. For those who are looking for good yield and safety of principal, this stock merits consideration.