DiGi confirms talks to assess strategic tie-ups

DiGi.Com Bhd and its major shareholder Telenor ASA are in continuous business development discussions to assess the possibilities for strategic partnerships with various parties to enhance their business, the company said yesterday.

In a reply to Bursa Malaysia Securities Bhd it said it would make the necessary announcements if and when significant developments materialised.

This is the first time that DiGi has said that it is in talks to assess the possibility of a strategic tie-up with any party after having previously denied such developments whenever the subject was reported.

Yesterday, DiGi was responding to a query from Bursa Securities on a report in The Edge weekly on Monday that rumours were circulating again that DiGi and Time dotCom Bhd would be involved in a corporate exercise that would see both companies gain.

The report, citing sources, said that talks between Khazanah Nasional Bhd and Telenor were progressing well and had received approvals, adding that the negotiations did not involve the management of DiGi or Time dotCom.

“Essentially, Khazanah has secured approval for a strategic tie-up between both companies. It will involve shares. Eventually, it will benefit both companies,” said the report.

The Edge said the structure of the deal involved Time dotCom’s wholly owned subsidiary, TTDotcom, taking up a 5% stake in DiGi.

“In return, DiGi would be given exclusive rights for use of the coveted 3G spectrum owned by TTDotcom. DiGi does not have a 3G licence, something that it could do with to expand its range of cellular services, especially the provision of mobile broadband services,” it said.

The Edge first reported in July 2006 that steps were being taken to match DiGi with Time dotCom, news that DiGi then had denied. DiGi also denied all subsequent reports on possible tie-ups with other parties.