TM sold KL Tower shares to focus on telco services

 

Telekom Malaysia Berhad (TM) today said it decided not to continue holding the concession for Menara KL management because the company wants to focus on its core business, which is telecommunication services.

In a statement, the government-linked company also refuted claims that the plan was made hush-hush, saying that the changes in shareholding of Menara Kuala Lumpur Sdn Bhd, the company that managed Menara KL, had informed Bursa Malaysia via TM’s financial announcement for the third quarters of 2022.

“As part of its business transformation programme, TM is focusing its efforts and resources on strengthening its core business of telecommunications and technology.

“After due consideration on the change in the business nature of Menara KL, from telecommunications services to tourism and hospitality, TM has decided in October 2021 not to renew the MKL concession and informed the government accordingly,” the company said.

TM's statement came days after its decision to sell its whole share of 10,000,000 units in Menara KL Sdn Bhd, with netizens questioning the move as the tower management business had reportedly generated steady income and the buyer was not a well-known company.

According to the telecommunications giant, KL tower is owned by the government while the operation and maintenance of the tower are granted under a concession.

Thus, following TM's decision to exit the concession, the process to select a new concessionaire was taken up by the government, “upon which TM was informed on the appointed company to take over the shares of MKLSB and the MKL concession.”

“MKLSB shall continue to operate the concession and ensure the continuity of MKL operations for the Malaysian public, including international visitors,” it said. - Mkini