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(KUALA LUMPUR) TM International Bhd, Malaysia's state-controlled mobile- phone operator, offered to sell stock at a 57 per cent discount in a rights issue to raise RM5.25 billion (S$2.2 billion) and help pay off debt.
Shareholders will be able to buy five new TM International shares for every four owned, the company said in a filing to the stock exchange here yesterday.
TM International is offering 4.69 billion new shares at RM1.12 each, less than half the stock's closing price of RM2.61 on Monday on the Malaysian stock exchange.
TM International had tumbled as much as 30 per cent since Feb 26, when the company announced the rights issue plan. The stock recouped some of the losses in the past three days after analysts said the declines were excessive.
The Kuala Lumpur- based company is seeking to raise funds to repay RM4 billion of debt to former parent Telekom Malaysia Bhd next month, and refinance about US$2 billion of loans used to invest in a mobile- phone operator in India.
The shares were suspended from trading yesterday for the sale announcement. The company is holding a meeting with shareholders to approve the rights offer. -- Bloomberg
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