What is your opinion on TM share?

What does TMI stands for?

TM international. I think that will be Celcom because TMI will deal with mobile service while TM will deal with fixed line.

First Celcom merged into TM group.

Now they demerge the mobile division.

What're they intended to "play"?

worth investment i guess... but meant for short term!

My friend said.

Tm mgmt want to do this because they target to sell the company to foreign investor. (forget which one). So the other company will get more benefit. I think they want to to the same thing as what one of telco company in asia did few years back.

TM will demerge into TM and TMI. Proposed date will be on April 21, 2008. It is good time to hold some of TM share now.

may i know y??

Demerge will make the TM share more focus. TM on dividen, TMI on more aggressive grow.

Yes, I also wish to listen to your explanation or analysis. Why we need to hold?

listing of celcom by this april, tentatively 21st
if i buy tm share now, will i get some % of celcom/ TMI share?

yup, the stock will split at a certain price. And some of TM staff said that, lower price could go higher.

TM now is at 11.00 already.

TM, TMI reference prices equivalent to TM shares

KUALA LUMPUR: The combined reference prices of Telekom Malaysia Bhd and TM International Bhd (TMI) will be equivalent to the last traded price of TM shares on April 22.

TM group chief executive officer Datuk Seri Wahid Omar said on Thursday the shareholding value of the TM shareholders would remain the same before and immediately after the reference price adjustments.

He told reporters after the AGM that Bursa Securities would announce the reference prices of TM and TMI after trading hours on April 22.

On April 23, the market price of TM shares would be adjusted downwards to reflect the TMI shares distributed to shareholders of TM, he said.

The TMI shares would be credited to the accounts of the TM shareholders on April 25 and TMI would be listed on the Main Board of Bursa Securities on April 28.

URL: http://biz.thestar.com.my/news/story.asp?f...22&sec=business

Let say TM close on 22 april is Rm11.

23 april open:
TM=RM3
TMI=Rm8

i read newpaper today///

Buy TMI, better or you buy TM now lar, wait for it to split then you can TM and TMI.

some of you might be hoping to buy TM and wait for hefty dividends but i am not sure how that will happen.

Yes... TMI will be more to agressive growth stock while TM most probably will give dividends.

I am not sure either because there are too many variables now. We have no idea how much stake TM will hold in terms of TMI shares.


Still confuse.

that y no 1 interested this page...haha

so what does this mean... the NAV of TM share will be $3. where goes my $8?

TM now 3.56 up 0.510. No bad after demerge.

Expected TMi will do better than TM one week from now.

The company split out or demerged, so some of the asset and business being aparted already. So TM value shrinks.

In this case, is TMI considered as a new IPO?

Demerged TM jumps on debut

PETALING JAYA: The de-merged Telekom Malaysia Bhd ™ led market gainers yesterday, climbing 49 sen, or an adjusted 16.07%, to RM3.45.

On its first day of trading minus the value of its domestic and international mobile communications arm, TM International Bhd (TMI), the stock was the leading mover of the KL Composite Index, contributing 3.24 points.

The de-merger exercise was the brainchild of outgoing TM group chief executive officer Datuk Seri Abdul Wahid Omar who will be taking up the position of president and CEO of Malayan Banking Bhd next month.

Yesterday, TM shareholders received one TMI share for every TM share held.

Citi Investment Research analyst Karen Ang, in a report dated April 21 that analysed TM as a de-merged entity having only the fixed-line business, saw "two inter-twined drivers" for the stock's price prospects on a 12-month view.

The drivers are a dividend payout policy and the country's high-speed broadband project.

Ang, who had a "buy" recommendation on the stock, said: "We see dividend policy as a key stock price driver and forecast a payout ratio of 90%, that is 30% higher than TM's minimum RM700mil target - this implies a net 5.5% yield."

Citi saw the dividend supported by free cash flows of RM1.3bil a year over the next three years.

"We believe investors will value TM against DiGi.Com Bhd - the only other Malaysian play though wireless - locally and then against the likes of Chunghua Telecom (of Taiwan) and Korea Telecom (of South Korea) regionally," the report said.

On the RM15bil high-speed broadband project, Ang said there was "a key risk" as associated capital expenditure would affect TM's ability to pay dividends. On the other hand, the project had the potential to create new revenue streams for TM, she said.

"Project details are in flux right now, given the change in the political climate. We await specifics before incorporating this into estimates," Ang said.

Citi had set its target price per share for TM post de-merger at RM4.80.

Meanwhile, Aseambankers, in a report issued yesterday, had a "fully valued" call on TM.

"Driven by positive news flows and sentiment, short-term price appreciation is not unexpected, although TM's challenges remain unchanged.

"We are still cautious on TM and TMI's immediate-term prospects," it said.

Valuations for telcos in the region had generally fallen by price/earnings multiples of one to two over the past three months or so, the research house said.

"Whilst this negatively affects valuations for TM and TMI, it has also opened the door for continued optimism that post-listing TMI may conclude a 10% new share placement to a strategic foreign shareholder, such as Emirates Telecommunications Corp," it said.

Though earnings were dilutive, TMI could use the funds from such a move to pare down debt to re-invest in its many emerging market operations.

TMI is the larger entity with an expected market cap of RM24.5bil based on its reference price versus TM's closing market cap of RM12.7bil yesterday.

TMI starts trading on Monday with a reference price of RM7.85.

URL: http://biz.thestar.com.my/news/story.asp?f...53&sec=business

I dont understand.. if yesterday you bought a TM share at RM3.5 you get TMI value at RM7.85 too??

Nope. that was waybefore when TM was at RM 10.90.


you kind of getting yourself confuse

the thing is..TM dropped so tremendously after the demerge.. so how can anyone who has bought tm at rm8 something sell for only rm3 something now..tho' both TMI and TM are doin quite good..but when will only TM goes bac to rm8 something..isnt it unfair for it to drop so terribly after the split? now wat to do wit TM shares of mine?

I believe if you bought before the de-merger, for each TM share you hold you will get TMI share.

I think you're confused.

Every 1 TM share you have you will get 1 TMi for FREE. So, there's no LOSS at all.

So, if you hold 5lots TM, you will get 5 lots TMi. So you will have 10 lots of share in your CDS.

It worth more now. TM already shoot to 3.60's and TMI will hit 8.15..

You must buy it few days ago. This is not true if you buy it now.

yes, I know tat..
now too late... but want to grab TMI after listing on Monday...

TMI will drop..becoz TM share the profit with 3.60 now...haha

Base on 22 april TM Rm11.10 -TM 3.05 IPO...TM=Rm8.05 IPO

Just come across some investment house put a price target of around Rm7.35, some near to Rm8.00 lower than IPO price?

Let see how it will open then.

wow, then I will queue buy at 8.00, not much but 200U

what cherroy say is true...

oh..thx btw.. but wats the price of the TMI share dat i'll get? btw..the share was given under ESOS..so still apply ryt?

TM, TM Int, builders weigh on market

KUALA LUMPUR: Selling of Telekom, TM International and infrastructure stocks Gamuda and IJM dragged the KL Composite Index into the red in the morning session on Tuesday.

However, DiGi was the top gainer in the morning session ahead of the release of its quarterly earnings this evening.

At 12.30pm, the KLCI had fallen 3.55 points to 1,291.76, the FBM Emas fell 36.35 points to 8,693.13 and the Second Board Index gave up 38.22 points to 5,856.09. The construction index lost 2.87 points to 240.43.

Turnover over 244.5 million shares valued at RM411.71mil. There were 189 gainers, 369 losers while 219 counters were unchanged.

Singapore’s Straits Times Index fell 0.74% or 23.56 points to 3,178.07 but Hong Kong’s Hang Seng Index added 1.11% to 35,950.66 and the Shanghai A Share Index added 1.37% to 3,695.37. Japan markets were closed.

Light crude oil for third-month delivery was at US$118.50 (RM373) per barrel while crude palm oil futures fell RM90 to RM3,420 per tonne, in tandem with the fall in rival soyoil.

The ringgit strengthened against the US dollar and it was quoted at RM3.148.

At Bursa Malaysia, the lack of buying support saw the 100-stock retreating from the early high of 1,305.09 as investors decided to stay on the sidelines. The early gains were not convincing enough to attract more investors into the market in the absence of strong corporate leads and also due to lingering concerns about the political situation in the country.

TM International, which was listed on Monday, extended its fall. It was the top loser, sliding 35 sen to RM7.20 while Telekom gave up eight sen to RM3.48. However, DiGi was the top gainer, advancing 30 sen to RM24.40.

Worries about the implementation of infrastructure projects saw Gamuda losing 12 sen to RM3.10 while IJM fell 10 sen to RM6.20.

Oil and gas play eased, with KNM and Shell Refining down 20 sen each to RM6.45 and RM11.40.

Plantations were mixed, with Batu Kawan sliding 20 sen to RM11.30 and Sarawak Oil Palm down 15 swen to RM5.85 but Glenealy added 10 sen to RM5.25. IOI Corp and KL Kepong were unchanged at RM7.55 and RM17.10 respectively.

JPK was the most active with 10.2 million shares done, up 2.5 sen to 25 sen. Tamco, which proposed to distribute 98 sen for every share in Tamco to its shareholders, rose 10 sen to RM1.01.

Tasek, which announced a dividend of 54 sen per share totalling RM99.6mil to shareholders, rose 26 sen to RM4.32.

However, Tamco jumped 13 sen to RM1.04 on plans to distribute 98 sen for every one share of 50 sen each in Tamco to its shareholders.

URL: http://biz.thestar.com.my/news/story.asp?f...21&sec=business

Shall we go for TM and TMi now?

I think it depends if you have already exercised your ESOS before the split. After the split, if you are a TM employee, then you will only get the TM shares because now it is 2 separate companies. I might be wrong.

I will enter when TMI = 7RM

I have entered at 7.05 which i assume is bottom line.
And the buy rate start rising. I expect it will rebound soon

TMI=Rm 3.62
TM = Rm7.15

Bro, you got it the other way round I think.
TM - RM3.62
TMI - RM7.15

TMI plans to make two to four more acquisitions

KUALA LUMPUR: TM International Bhd (TMI) offers a solid growth story and investors should view it from a fresh perspective after its separation from former parent Telekom Malaysia Bhd, said group chief executive officer Datuk Jamaludin Ibrahim.

“It's a brand new chapter” for the newly listed entity, he said recently.

Indeed it is. TMI emerged after the de-merger of TM where the fixed-line business remained in TM and the cellular and other related business spun to TMI. Offering investors exposure to 10 countries, TMI was listed on Bursa Malaysia on April 28.

The future growth story may seem impressive but the share price performance since TMI's debut does not reflect that. The lacklustre performance has left many investors wondering how low the stock could go.

Of course, the unfavourable market conditions have been a factor to the stock's southward movement but to analysts, the reference price of RM7.85 was “too high”. Even at RM7.20 where it has been hovering the last few days, an analyst felt the stock “was not fundamentally attractive”.

“Perhaps it needs to come off by 10% before investors want to look at it,” the analyst said.

The wait-and-see stance could have been one of the reasons many analysts have yet to come up with their research notes or recommendations on this stock. Since listing, TMI has shed 60 sen to close at RM7.25 yesterday.

To Jamaludin, these are early days. The challenge, however, is clear: How to convince global investors to add TMI to their portfolio of regional celco/telco stocks when stocks such as Singapore Telecommunications, SK Telecom, China Mobile and even DiGi.Com Bhd rank higher than TMI.

Jamaludin’s growth strategy

The man at the helm has big plans. Credited for helping rival Maxis Communications Bhd grow to where it is today, Jamaludin was handpicked for the TMI job.

There are more similarities in steering Maxis and TMI than differences, he said.

“Here at TMI, I am managing more companies outside Malaysia, so the approach and strategy are different,” he said. He was group CEO of Maxis for a decade before he called it quits last year.

He believes TMI has a sound footing but needs a growth strategy to take it to the next stage. His “twin engines of growth” strategy is about growing TMI organically and via mergers and acquisitions (M&A) as the opportunities are substantial in all the markets.

“We have to shift gears to move forward. Over the past three to four years, we spent 70% to 80% of the time building our footprint.

“In future, we will expend the same amount of time to build and nurture the companies we have. That would be the right thing to do but the focus on M&A is still there and we are looking at possibilities,” he said.

On the cards is a review of strategy in all the markets as growth varies from one country to another, with subscriber penetration levels below 20% in some markets and under 40% in others.

“To support our growth, we need to build world-class processes and best practices. We also need talent.

“We would, therefore, nurture what we have and bring in new talent so as to create a world-class management team,” Jamaludin said.

He also likes the idea of growing via M&As.

“TMI will acquire stakes in two to four more companies from now till 2015” in any South Asian or South-East Asian country, he said. It could even be in “Indochina, Pakistan or even Iran,” he added.

Funding

Funding capital expenditure is not going to be an issue.

“It is hard to say how much funding we would need for M&As. What we can say is that it would be a combination of debt and equity and support from shareholders, including from our biggest shareholder Khazanah Nasional Bhd.

“In the past, we had worked with Khazanah to buy Indonesia’s Excelcomindo (XL) and Singapore’s Mobile One (M1).

“We could also raise funds as we have the flexibility of issuing 10% of TMI shares but any sale has to be event driven. Sourcing for funding would be a challenge but it would not stop us from growing,” Jamaludin said.

TMI needs RM11bil in capital expenditure over the next three years to grow its business in all 10 markets. Its notable markets are Malaysia (via Celcom (M) Bhd), Indonesia (XL), Singapore (M1), Bangladesh (AKTel), Cambodia (Hello), India (Spice) and Sri Lanka (Dialog).

It has nearly 40 million subscribers in these countries. In Sri Lanka, it is the lead player but for the other countries it is ranked second to fifth.

Regional mobile champion

The twin engines of growth strategy, the pool of talent, and best practices and processes are pieces of a jigsaw that, when fitted together, should pave the way for TMI to become a regional mobile champion.

“We are clear on what we want. We have a definitive plan to be a regional mobile champion by 2015.

“We want to be a leading company (in terms of revenues) in the league of companies like Maxis, Telenor AXA and SingTel, as the rest of the celcos are one-country operations.

“We are now smaller than SingTel and Telenor but slightly bigger than Maxis,” Jamaludin said.

TMI's “somewhere in the middle” position among regional celcos/telcos could be the reason for the lukewarm response to its shares, at least for now.

An analyst said for now, TMI still had “legacy issues and it is the same business as in the past. There are also some regulatory issues to political risks in some countries. Greater clarity and certainty are needed.”

His challenge

What could derail Jamaludin's plans for TMI?

“In the short term, there could be economic and regulatory issues and even political stability in some countries. But in the longer term, we do not see any major impediment.

“I agree it is a tall order but that makes working towards building TMI into a regional mobile champion much more interesting,” he said.

In the case of Celcom, the challenge would not just be the mobile number portability but also issues such as channels, pricing and packaging.

“We also have to fix the basics such as billing and customer services and other touch points. There has been some progress and I am in discussions with Datuk Seri Shazalli Ramly (Celcom CEO) on what’s next. But the trick is in the execution and not strategy. In a year, Celcom will be the undisputed No. 2 player as we would have strengthened our position.”

Indonesia’s XL has adopted a new strategy of going for price leadership and it is able to do so as its cost structure is low. It is also looking to unlock the value of its tower business and a decision on this will be made in three months.

Dialog is positioning for the future by getting into the wireless broadband, wireless fixed line and DTH TV business, even as competition for its mobile business intensifies with Maxis – via Usaha Tegas – now in the marketplace. “For the new businesses, we do not expect to be a big player in two to three years but it is positioning for the future.”

Its Bangladesh operation, meanwhile, faces funding and operational issues. Business repositioning and a stronger management team were in the works while funding should be resolved in one to two months, he said. “We are doing quite well despite competition in India.”

Jamaludin does not preclude possible acquisitions in view of market consolidation in India. He also denied there was any rift with other major shareholder, the Modi family.

Best of both worlds

Rising to the occasion, Jamaludin has made it clear he is not steering a “sinking ship”.

“The board has given me the latitude to change the company’s culture, processes and nurture talent. It is almost like a blank sheet of paper.

“And unlike some companies where you start from scratch, I am inheriting a company that is doing quite well, and my mandate is to challenge everything to do better.

“Besides that, we have controlling shareholding in six of the 10 markets we are operating in. We have created a good company, have new aspirations, thinking and culture.

“That is why I am confident that with the twin strategies of growth, we can make things happen at TMI,” Jamaludin said.

URL: http://biz.thestar.com.my/news/story.asp?f...57&sec=business

Hopefully, TMi will be another Digi or Maxis in Malaysia.

Celcom is in the business for a long time.

The current share price to some extent reflecting towards the reality or fair value, or at least the perception of the investors generally.

Why would people want to buy DIGI at RM 20 plus then ? when TMI is much lower.

No doubt, it could become an overweight stock, because sharing investing is about the future.

TM good for dividen..
TMI for future...

Will TM drop today since it has its biggest blow yesterday?

sometimes when djia drop a lot, asian market tend to just ignore that

Nikkei track 4+% drop

It's RM 2.56 now!