Telekom Malaysia Demerger

[chenchow]

On 28th September 2007, a major announcement was made by Telekom Malaysia, where it has decided to demerge the company, and create 2 separate listed companies in Bursa Malaysia.

There would be a spin off of all the wireless carriers owned by TM Group, eg: Celcom, XL, M1 etc. All these would make up TM International and would be listed as such.

And the other remaining portion of TM would be maintained within TM.

What do you see the impact of this? With this break up, it would create 2 quite large companies, but longer one of the giants.

Do you see the spin-off would create greater focus for the telco and in the end bring in greater value for the shareholders?

[taufiq]

Telekom Malaysia demerged? When was that?
hehe just kidding Chen Chow

TMI will focus more on Mobile communications and technology.
Celcom under TM Berhad was not able to expand as big as it should be.

[Thirdshifter]

Telekom Malaysia acquired all of its structure, they did not Merge in the first place with any company.

There is do de-merging, it is decentralizing. They are dividing the structure of management. The profit and shareholders would continue to serve both.

[mybizforum]

whatever it is TM undertook...
the share price of TMI has been rather demotivating.
its so rare to see a newly listed share, falling n falling on its first day.
typical shares normally rise n rise on its first day of listings..
real dissapointing..

:cry

http://investpublicmutual.blogspot.com

[rainyshark]

I'm doing my IA Business on this topic.
But the sophisticated words in the business articles that i've read seems to make me even more confuse...
Can anyone tell me what's the short version of this issue?
What I understand so far is TM demerged into two different companies, namely TM and TMI
Critics said that TMI will be more profitable than TM but it turns out that TM is making profit than TMI now.
TM is responsible for the fixed line and broadband connection while TMI is responsible for mobile(Celcom) and any other international companies under it...

[nigelsim]

im doin on de same topic for my IA as well...

[Caprio]

im doin on de same topic for my IA as well...

May I know what IA here stands for? I tried to google and but to no avail.

Is it Information Architecture? But it makes no sense to your assingment here.

[nigelsim]

internal assessment... its part of IB requirement for business management studies...

[vseehua]

bah... why use such a complicated term such as demerger when they can use a much simpler work 'split' instead -.-

[jayden]

bah... why use such a complicated term such as demerger when they can use a much simpler work 'split' instead -.-

Demerger sounds more high tech and business-like :P

[jiinjoo]

Looks pretty much the same as trying to do a China Netcom and a China Unicom, or Japan's NTT East, NTT West, NTT Docomo, or all the "baby bell" thing. Competition is always good for the people, although in this case there's a little lack of head to head in existing business. But for new businesses there will be a clash and if the processes are transparent enough without favourtism, then both will bid for the best price.

Share prices won't look good after that I think - since competition means both company would earn less than being a monopoly. Both companies will have to move in to new business areas to increase their margins.