In an announcement to the Kuala Lumpur Stock Exchange (KLSE) last night, Telenor said it would offer RM6.60 for each DiGi share for up to 210.5 million shares to all holders of the remaining 503 million DiGi shares.
This exercise would give Telenor a 61 percent stake in DiGi, the maximum foreign ownership permissible under Malaysian law. Telenor currently hold 247 million ordinary shares in DiGi, or approximately 32.9 percent.
The partial tender offer is conditional on Telenor receiving acceptances such that it will hold at least 375, 000,001 DiGi shares representing, 50 percent plus one share, at the completion of the offer.
Following the offer, Telenor will maintain the public listing status of DiGi on the KLSE. The offer is subject to approvals from the authorities and DiGi's shareholders.
"We made our initial investment in December 1999 and have come to learn the market and the company as very promising," Telenor Mobile Communications chief executive officer Arve Johansen commented in another press statement.
DiGi had revenues of RM652 million in 2000, with total subscribers of 1.03 million at the end of March 2001.
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