| Type | Announcement |
| Subject | DiGi.Com Berhad - MEMORANDUM OF UNDERSTANDING (“MOU”) BETWEEN DiGi TELECOMMUNICATIONS SDN BHD (“DiGi Tel”) & TELENOR ASIA PTE LTD (“Telenor”) AND CELCOM AXIATA BERHAD (“Celcom”) (FORMERLY KNOWN AS CELCOM (MALAYSIA) BERHAD) & AXIATA GROUP BERHAD (“Axiata ”) (DiGi Tel, Telenor, Axiata and Celcom, shall collectively be referred to hereafter as “Parties”) |
| Contents | 1) Introduction The Board of Directors of DiGi.Com Berhad (“DiGi” or the “Company”) wishes to announce that its wholly-owned subsidiary, DiGi Tel together with its major shareholder, Telenor Asia Pte Ltd had on 10 June 2010 entered into a MOU with Celcom and its major shareholder/holding company, Axiata to explore the viability of long-term collaboration of sharing network infrastructure in Malaysia (“Proposed Collaboration”). 2) Salient terms of the MOU Under the MOU. the Parties will focus in the following network collaborative areas: (i) Operations and Maintenance sharing; (ii) Transmission and site sharing; (iii) Radio Access Network (RAN) sharing The MOU is valid for a period of 6 months unless agreement(s) have been entered into to replace the MOU or it is earlier terminated in accordance with the MOU. Either Party may extend the validity period by giving 30 days notice before expiration of the MOU. 3) Information on the companies 3.1) Telenor Asia Pte Ltd Telenor is a private limited company incorporated in Singapore with an issued and paid-up share capital of SGD2,789,055,316. Telenor is the major shareholder of DiGi, holding 49% of the issued and paid-up share capital of DiGi. Telenor is indirectly wholly-owned by Telenor ASA which is listed on the Oslo Stock Exchange. The Telenor Group is an international provider of high quality tele, data and media communication services with mobile operations in 13 markets across the Nordic region, Central and Eastern Europe and in Asia. Headquartered in Norway, the Telenor Group is among the largest mobile operators in the world with 179 million mobile subscriptions (per Q1 2010), revenues in 2009 of NOK 107 billion, and a workforce of more than 45,000. 3.2) Axiata Group Berhad Axiata was incorporated in Malaysia under the Companies Act, 1965 on 12 June 1992 as a private limited company under the name of Telekom Malaysia International Sdn Bhd. On 16 October 2001, Axiata changed its name to TM International Sdn Bhd and on 12 December 2007 converted into a public company under the name of TM International Berhad. Axiata assumed its present name on 31 March 2009. The issued and paid-up share capital of Axiata stands at RM8,445,154,455 comprising 8,445,154,455 ordinary shares of RM1.00 each. Axiata is an investment holding company and provides consultancy services on an international scale where it has investments in subsidiaries and associates. Axiata Group is principally involved in the provision of mobile communication services and network transmission related services and is one of the largest Asian telecommunication companies, focused on high growth low penetration emerging markets with controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India, Singapore and Iran. Axiata also has stakes in non-mobile telecommunication operations in Thailand and Pakistan. The Axiata Group has over 130 million mobile subscribers in Asia and provides employment to over 25,000 people across Asia. 3.3) Celcom Celcom was incorporated in Malaysia on 5 January 1998. The issued and paid-up share capital of Celcom stands at RM1,237,534,681 comprising 1,237,534,681 ordinary shares of RM1.00 each. Celcom was the first privately owned company in Malaysia to offer mobile services when it launched its “Art 900” analogue mobile system in 1989. In 1989, Celcom was one of the first operators in Malaysia to provide digital services through its GSM 900 network. Celcom currently operates 2G (GSM900 and GSM1800) and 3G cellular services and provides mobile telecommunication services in Malaysia under the brand name ‘Celcom’. 4) Rationale The Parties’ objective for the Proposed Collaboration is to initiate a viability study to explore and develop a long-term and sustainable business model on network and infrastructure sharing managed by multi-functional teams from all the Parties. The Proposed Collaboration is expected to result in significant long-term cost savings and operational efficiency through active sharing of infrastructure, namely in the areas of Operations and Maintenance; Transmission; and RAN. 5) Approval of Shareholders and Authorities The entry by DiGi and/or Telenor into the MOU is not subject to the approval of the shareholders of DiGi and/or regulatory authorities. 6) Financial Effects The entry into the MOU does not have any effect on the issued and paid-up share capital of DiGi and is not expected to have any material effect on the earnings, gearings and net assets of the DiGi Group for the financial year ending 31 December 2010. 7) Directors’ And Major Shareholders’ Interest None of the directors and major shareholders of DiGi and/or persons connected to them have any interest direct and/or indirect in the MOU. 8) Directors’ Opinion The Board of DiGi is of the opinion that the MOU is in the best interest of DiGi Group. |
| Company Name | DIGI.COM BERHAD |
| Stock Name | DIGI |
| Date Announced | 10 Jun 2010 |
| Category | General Announcement |
| Reference No | CC-100609-58133 |
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