Telekom to buy VADS for RM417m

DOMINANT fixed-line services provider Telekom Malaysia has proposed to buy out the rest of its 63 per cent-owned VADS Bhdunit for RM417.3 million (US$122.2 million), VADS said today.

Under the terms of the proposal, VADS shareholders other than Telekom Malaysia would be paid RM7.60 a share in cash, an 11.8 per cent premium to the current market price of VADS.

Trading in VADS shares was suspended prior to the buyout announcement.

VADS shares last traded at RM6.80 while Telekom Malaysia shares fell 1.2 per cent to RM3.42 in a market that gained 0.3 per cent. - Reuters