SingTel to buy stake in Time

SingTel to buy stake in Time

SINGAPORE (AFP): Singapore Telecommunications Ltd. (SingTel) on Friday announced it had entered into a "non-binding conditional" agreement to take a strategic stake in Malaysia's Time Engineering group.

The agreement with Malaysian multi-industry firm Time Engineering Bhd., and its parent conglomerate Renong Bhd. would pave the way for SingTel to buy into debt-ridden Time Engineering and its telecoms unit, TimedotCom Bhd.

The conditional agreement signed by Singapore Telecoms International Pte. Ltd., a wholly-owned subsidiary of SingTel, Time Engineering and Renong, identifies Sing Tel as a "strategic investor."

Under the pact, SingTel will be offered a 14.5 percent stake or 108.22 million shares in Time Engineering at six ringgit per share (US$1.57), and the Malaysian firm will offer SingTel a 20 percent stake in the enlarged share capital of TimedotCom and its Internet service provider business.