Swiss-KL telecom deal

Swiss-KL telecom deal

KUALA LUMPUR (AFP): Swiss Telecom PTT will formalize its acquisition of 30 percent of Malaysia's Mutiara Telecoms Sdn Bhd for 710 million ringgit (US$285 million) this week, company officials said Saturday.

An agreement on "completion of investment and formalization of partners" between the two parties is to be signed on Thursday, a Mutiara official told AFP.

Mutiara, controlled by billionaire businessmen Tan Chee Yioun, will be the second local telecommunications firm to have a substantial foreign partner, the other being Binariang Sdn Bhd. U.S. West owns 40 percent of Binariang.

Analysts said Swiss Telecom was effectively valuing Mutiara at close to $1 billion, with about $100 million for Mutiara's potentially lucrative international gateway license alone.

Mutiara is said to have invested nearly 700 million ringgit into its cellular operations and infrastructure for its planned international business.