Dialog Rights Issue >>>>>

23 May 2007, Colombo Dialog Shareholders Approve Largest Ever 15.5 Billion Rights Issue Telekom Malaysia (TM) to Inject 13 Billion in FDI Dialog Telekom Ltd. (DTL), announced Wednesday (23 May 2007),that the Shareholders of DTL, at its AGM held on 21 May 2007, approved the company’s landmark Rights Issue to a value of Rs.15.5 billion. The Dialog rights issue represents the single largest equity raising exercise to be executed on the Sri Lankan capital market. Dialog's principal shareholder Telekom Malaysia (TM) placing a strong vote of confidence in Sri Lanka and Dialog Telekom has pledged to enhance its direct investment in the country through subscribing in full for its entitlement under the rights issue. “We have the utmost faith in the Sri Lankan market, the investment environment facilitated by the Government of Sri Lanka, and the enabling environment we have enjoyed under the aegis of the Telecommunications Regulatory Commission, the BoI and the Ministry of Media” said Yusof Annuar Bin Yaacob - Chief Executive Officer of TM International Sdn Bhd, commenting on Telekom Malaysia’s commitment to invest Rs 13 Bn in DTL via the Rights Issue. “We will continue to invest in Sri Lanka as we have done in the past with the objective of providing excellent and technologically advanced services to the Sri Lankan consumer” he added. The rights issue will provide ordinary shareholders of the company with an entitlement to one ordinary share for every ten ordinary shares held, at a price of Rs. 21 per share. The Dialog Telekom Rights Issue is expected to attract substantial interest from Dialog’s shareholders spanning foreign institutional, domestic institutional and domestic retail segments. The proceeds of the Rights Issue and Preference Share Issue totalling approximately Rs. 20.54 Billion will partially finance the Dialog Group’s aggressive capital expenditure plans for the next 3 years targeting accelerated expansion of network capacity and coverage and transformational investments in convergent technologies spanning the multiple businesses lines of the group. Dialog’s investments in Broadband, fixed wireless, and Media are expected to deliver the next phase of growth and supplement the already robust returns delivered to its shareholders, whilst contributing significantly to the communication infrastructure of Sri Lanka. The performance of the DIAL share has been a key driver of the buoyancy and growth of the CSE and associated indices. The DIAL share rose by approximately 117% during the 22 months following the company’s listing in July 2005. Presently DIAL accounts for 22% of the market capitalisation of the CSE. The proposed financing exercise forms a part of a larger medium term funding programme, which would include further local and off-shore debt infusions aimed at maintaining an optimally geared capital structure. The rights issue is supplemented by a Rated Cumulative Redeemable Preference Share Issue of up to Rs 5 Bn. The RCRPS are non-convertible and carry no voting rights. The 5 Billion RCRPS issued at Rs.1/- each will be placed with selected investors possessing the requisite scale, through a private placement. Potential investors in the redeemable preference shares are expected to include licensed commercial banks, financial institutions, foreign and local fixed income funds, institutional investors, recognised employee benefit schemes, unit trusts, insurance companies and high net-worth individuals.
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About Dialog Telekom Limited Dialog Telekom Limited is the largest mobile operator in Sri Lanka with over 3.37 Mn subscribers, representing approximately 60 per cent market share. It is also the largest listed Company on the Colombo Stock Exchange in terms of Market Capitalisation with a market capitalisation (as of 22 May 2007) of LKR 185.086 Bn (USD 1.68 Bn), representing 22.28 per cent of the market capitalisation on the Colombo Stock Exchange. The Company has the distinction of having become the first Company in Sri Lanka to achieve a market capitalization exceeding USD1Bn. Dialog Telekom Limited is a subsidiary of the Telekom Malaysia Group. In addition to its core mobile telephony business, the Company provides international services, supporting an International Gateway infrastructure providing retail and wholesale international voice and data services under the brand name of Dialog Global. The company also provides Internet services through Dialog Internet - a fully-fledged Internet Service Provider (ISP). Dialog Telekom also operates Dialog SAT, a mobile satellite service. About Dialog Broadband Networks (Pvt) Ltd Dialog Broadband Networks (DBN) is a fully owned subsidiary of Dialog Telekom Ltd, and is a key player in Sri Lanka’s ICT infrastructure sector, providing backbone and transmission infrastructure facilities and data communication services. Dialog Broadband is also soon to commence the provision of fixed wireless telephony services based on CDMA technology, and Broadband Wireless Access Services using WiMax technology. About Asset Media (Pvt) Ltd Asset Media is a subsidiary of Dialog Telekom Ltd., and is licensed by the Ministry of Media to provide Television Broadcasting services, delivery of Pay Television and Cable Television Services and the operation of a Television broadcasting station. The company operates a Direct to Home Satellite based Pay Television service under the brand name of Dialog TV. Dialog TV supports a broad array of International content including CNN, BBC, HBO, Cinemax, AXN, ESPN, Discovery Channel, MTV (Music Television) and Cartoon Network, in addition to a wide portfolio of Sri Lankan television channels including Rupavahini and ITN. Dialog TV services are based on cutting edge DVB-S digital broadcast infrastructure.