Bangkok--July 30--Samart
Samart Corporation PLC announces that its strategic partner Telekom Malaysia International Sdn Bhd is buying an additional stake in the company, and as a result has gained approximately US$14 million or over Baht 450 million in reserve cash to meet it future expansion plans.
President and Chief Executive Officer of Samart Corp discloses that Telekom Malaysia will now hold a 24.99% stake in Samart which is selling 4,526,942 shares valued at Baht 100 per share. (Telekom Malaysian previously held a 20.12% stake in Samart following the formation of a major strategic partnership concluded on 9 June 1997).
"The new shareholding agreement places Samart in a financially sound position to fulfill our expansion plans for the coming years. We are fortunate in that we will not have to rely on foreign loans particularly during this turbulent economic period. Many big companies are already burdened with high interest rates following the flotation of the Baht currency," says Mr. Charnchai.
He adds that the increased shareholding of Telekom Malaysia reflects its confidence in the capability of the Samart group of companies. "The 24.99% shareholding is the ceiling set by Samart as we will continue to have control in charting our expansion goals. Also, Samart will still be able to take an active part as initially agreed in the expansion of Telekom Malaysia's key projects such as the Multimedia Super Corridor," states Mr.Charnchai.
According to Dato Mohamed Said bin Mohamed Ali, Chief Executive Officer of Telekom Malaysia, "The decision to increase our stake in Samart stems from the same vision we share as strategic partners. To be a potential force in the region in telecommunication, multimedia and information technology, we will share our expertise and technologies in numerous areas. While Telekom Malaysia at present is offering its experience in PCN 1800 mobile phone service to Samart, we are seeking the Electronic Commerce technology of Samart."
"Today's seamless global marketplace makes all the more sense for Samart and Telekom Malaysia to cooperate and enhance our competitive edge for long term success, "he stressed. End