business

Shareholders give nod to Time's RM2bil AIMS sale

KUALA LUMPUR: Time dotCom Bhd's shareholders have agreed to the company's proposed disposal of its data centre business for slightly over RM2 billion.

Time, in a Bursa Malaysia filing, said a total of 587 shareholders holding 1.44 billion shares voted for the proposal, against 41 shareholders owning 177,868 shares at its extraordinary general meeting today.

This means the proposal received an overwhelming support of shareholders representing 99.98 per cent of voting shares versus 0.12 per cent of those who were against it.

Time had on last Nov 21 announced the divestment of its AIMS data centre business in Malaysia and Thailand to Digital Bridge Group Inc's unit DB Arrow Pte Ltd for slightly over RM2 billion.

Time also announced that it would distribute a dividend of RM1 billion or half of the sale proceeds to the shareholders.

Previously, some market watchers said the disposal would diminish the long-term shareholder value for some of Malaysia's largest public funds.

The Employees Provident Fund, Khazanah Nasional Bhd and the Retirement Fund (Incorporated) or KWAP collectively hold a 37 per cent stake in Time.

Industry observers noted that upon divestment of AIMS, Time would deconsolidate the high growth data centre segment.

Hence, it would lose the opportunity to realise future share price gains from the growth of the data centre segment and increase its share of contribution to a well diversified revenue and net profit portfolio mix.

Most Popular
Related Article
Says Stories