KUALA LUMPUR – Telekom Malaysia Bhd (TM) has proposed an internal reorganisation, which involves the transfer of its businesses in Malaysia to a single operating entity named TM Technology Services Sdn Bhd (TM Tech).
The reorganisation is expected to be completed by December 31, 2023, it said in a filing with Bursa Malaysia today.
TM said the 11 subsidiaries involved are Cybermall Sdn Bhd, Mobikom Sdn Bhd, Telekom Applied Business Sdn Bhd, Telekom Enterprise Sdn Bhd, Telekom Multi-Media Sdn Bhd, Telekom Sales and Services Sdn Bhd, Telekom Technology Sdn Bhd, TM Info-Media Sdn Bhd, TM Net Sdn Bhd, VADS Bhd, and VADS Lyfe Sdn Bhd.
It said that under the conditional merger agreement, all the identified assets and liabilities will be transferred to and be vested with TM Tech, with effect on and from March 1, 2023, or such date as may be mutually agreed by the transferors and TM Tech and as ordered by the high court.
TM explained that as part of the proposed internal reorganisation, selected transferors will be dissolved on Dec 31, 2023, but TM and VADS will not be dissolved.
It also noted that the purchase price payable for the transfer and vesting of the identified assets and liabilities of the transferors to TM Tech will be the total book value of the identified assets less the total book value of the identified liabilities, as at the close of the business of the transferors, on the last business day before the vesting date.
In a media statement, TM said the reorganisation, which includes Unifi, TM One and TM Wholesale, among others, marks the next phase of the group’s transformation to be the enabler of a digital Malaysia, and to further improve its operational efficiencies, streamline processes and simplify customer touchpoints to provide a more seamless customer experience.
“Incorporating its diverse businesses under TM Tech will also reinforce TM’s fixed-mobile convergence leadership, offering integrated fixed broadband, mobile services, data services, digital content and innovative solutions to communities, businesses and the government,” it said.
Group chief executive officer Imri Mokhtar said that as digital lifestyles, increasing competition and stakeholder expectations reshape the industry, consolidating these businesses into one operating entity will allow TM to serve its diverse customer segments better and deliver their needs more quickly.
“Consolidating our suite of connectivity and digital offerings will also enable us to easily tap into the right combination of solutions to meet the unique needs of individual lifestyles and businesses.
“Furthermore, this reorganisation aligns us to industry best practices and will improve TM’s competitive edge among Malaysian and international telecommunication companies and digital players, as we continue to pursue our aspiration of becoming a leading human-centred TechCo,” he said.
TM said under TM Tech, consumers will continue to enjoy the fastest and widest all-in-one connectivity and digital content while enterprises and the public sector will benefit from TM’s digital and smart solutions, including cloud and data centres, cybersecurity, and smart industry offerings.
The operating entity will also continue to champion TM’s nation-building efforts in expanding and modernising the country’s fibre network, data centres and submarine cable systems, it said.
TM Tech will be led by TM’s existing senior management team and will bring together its diverse talents under a single company, encouraging greater agility and cross-functional collaboration to improve service quality.
“TM staff will remain the execution engine for TM and the country’s digital transformation.
“While our workforce will be realigned to this single operating entity, employee functions, entitlements, and benefits will remain unchanged,” Imri explained.
Similarly, TM noted all of TM’s partnerships, vendor, and service agreements will remain in effect.
“Telekom Malaysia Bhd will now serve as an investment holding company for this operating entity, with all other subsidiaries within the group, to remain status quo.
“Beyond TM’s own growth, this reorganisation strengthens our role in advancing the country’s digital transformation and to serve our customers in a more cohesive manner.
“While it marks a new milestone in our continuous transformation, we remain anchored to our purpose of enabling digital inclusion, opportunities and progress for all,” Imri added. – Bernama, December 14, 2022
