Telekom - Sale n Leaseback (Outperform- RHB)

Telekom: Enters Into Agreement For Sale and Leaseback Of Its Buildings Ou
- TM announced yesterday that it had entered into a conditional SPA and Master Ijarah Agreement with Menara ABS Berhad (MAB) for the proposed sale and leaseback transaction of four buildings.
- These buildings will be disposed for RM1bn and leased back to TM for up to 15 years. The proposed transaction is expected to be completed by end-Jan 2008.
- This proposed transaction would facilitate TM’s strategy in monetising its non-core assets. In addition, the amount raised would also facilitate the payment of the special gross dividend of 65 sen/share (or RM1.6bn) that was announced last month.
- RHB maintain an Outperform recommendation on TM with a SOP-derived fair value of RM12.90.