VADS shares surge after Telekom Malaysia buyout offer

Shares of Malaysia's VADS Bhd rose more than 7 percent on Tuesday, after Telekom Malaysia proposed to buy out the rest of its 63 percent-owned unit for 417.3 million ringgit ($122.2 million).

Under the terms of the proposal, announced on Monday, VADS shareholders other than the dominant fixed-line services provider Telekom Malaysia would be paid 7.60 ringgit a share in cash, an 11.8 percent premium to the then market price of VADS.

VADS shares were up 7.35 percent at 7.30 ringgit by 0108 GMT, while Telekom Malaysia shares were down 0.58 percent at 3.40 ringgit. The broader market was down 0.38 percent.