Deutsche Telekom AG is set to pay a substantial $522m for a major stake in Technology Resources Industries Bhd hears the Wall Street Journal. It is understood to be buying both new shares and some shares held by the quoted company’s controlling shareholder, Tan Sri Tajuddin Ramli, with the new shares representing 10% of the enlarged equity. Should the deal proceed as it was outlined to the Journal, Deutsche Telekom will own 18.2% of the enlarged share capital and Tan Sri Tajuddin’s holdings will be diluted to 25.5%. The paper hears that the deal was held up because of disagreements over pricing and over an exclusivity clause Telekom wanted that would prohibit the Malaysian from establishing partnerships with other foreign telecommunications companies. The company owns Cellular Communications Network Sdn Bhd, which operates Malaysia’s largest cellular network, with a subscriber base of some 700,000. It also holds licenses to operate a fixed-line network and an international telephone service.
