Telenor reduces stake in DiGi

In a book building exercise Telenoron Wednesdaysold 76.5 million shares in DiGi, constituting 10.2 per cent of the total issued share capital, at RM 21.5 per share to Malaysian investors for a total of RM 1,612.5 million (approximately NOK 2.6 billion).

DiGi announced earlier Wednesay that it has signed a heads of agreement for a strategic alliance with Time dotCom Berhad ("Time"), a company listed on the Malaysian Stock Exchange. The agreement between Time and DiGi will, among other factors, entail a transfer of Time's 3G licence to DiGi for a total consideration of 27.5 million new DiGi shares. After the issuance of 27.5 million new ordinary DiGi shares for Time's 3G spectrum, Telenor will have a 49 per cent ownership in DiGi. The transfer of the 3G licence is subject to regulatory approval and is expected to be completed during the first half of 2008.

"We have reduced our equity stake in DiGi by selling to Malaysian investors. DiGi is a fully-fledged member of the global Telenor Group and plays an important role in the Group's future plans. The company will still remain consolidated and Telenor will continue to be the industrial driving force behind DiGi," said Mr. Arve Johansen, Deputy Chief Executive Officer and Head of Region Asia, Telenor.

Following an agreement with the Malaysian Government in 2001, allowing Telenor to increase its ownership in DiGi to 61 per cent, DiGi's customer base has grown from 1.1 million to 6.1 million. This constitutes an increase in market share from around 16 per cent to approximately 28 per cent today. DiGi reported revenues of NOK 5.50 billion (RM 3.19 billion) during the first three quarters of 2007. Earlier this year, DiGi was proclaimed "Wireless Service Provider of the Year in Asia-Pacific" by Frost&Sullivan.


Forfurther information, please contact:
Esben Tuman, Communications Director, Telenor Asia
Phone: +66 85 918 4111, e-mail: esben@telenor.com