Thursday, September 04, 2008

Is Telekom Malaysia's stake a good buy for Sotelgui?

Telekom Malaysia, Malaysia's second-biggest mobile-phone operator, sold its 60 percent stake in Societe des Telecommunications de Guinee, known as Sotelgui, to the Guinean government.

The sale follows a visit by Guinea's Communication Minister Tibou Kamara, Finance Minister Ousmane Dore and Sotelgui officials to Kuala Lumpur, the west African nation's government said in a statement read on national television yesterday. The state now controls 100 percent of Sotelgui and plans to seek new private investors for the company, it said.

Sotelgui competes with companies including Areba, a unit of MTN Group and France Telecom SA's Orange mobile-phone subsidiary. The Conakry-based company has 25,000 fixed-line subscribers and about 1 million mobile-phone customers.

Will the sale benefit Telekom Malaysia in general?