POS MALAYSIA GRANTED NEW POSTAL SERVICES LICENCE

The Ministry of Energy,
Communications and Multimedia has granted Pos Malaysia Bhd (POS) a new
34-year Postal Services Licence late last month. The licence awarded on July 24, 2001 covers a period of 34 years,
expiring July 23, 2035. Phileo Allied Bhd (PAB) which entered into a share purchase agreement
with the Minister of Finance Incorporated (MoF) to acquire POS in May this
year said this in an announcement to the Kuala Lumpur Stock Exchange (KLSE)
today. PAB said the licence entailed the right for POS to convey by post from
one place to another whether by land, air and sea all letters. Under the licence, POS is also responsible to perform all incidental
services of receiving, collecting, sending, despatching and delivering all
letters. It also authorises POS to do all or any of the act which is specified
in the new license. PAB also said that the conversion price of the redeemable convertible
loan totaling RM250 million owing by PAB to MoF was fixed at RM1.92 per
share. The redeemable convertible loan was agreed upon as part payment for the
acquisition of POS by PAB from MoF. PAB said the Securities Commission did not have any objection to a
`cash-top-up’ by the MoF to enable the latter to achieve the desired equity
interest of 31.6 percent in PAB. However, the approval of the shareholders of PAB has to be obtained for
the proposal and the circular to shareholders has to clearly indicate this. The cash top-up involves an option to MoF to convert the redeemable
convertible loan into 250 million shares and RM230 million in cash for
conversion. — BERNAMA MFZ KTCBERNAMA, 13th August 2001