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Wednesday, February 8, 2023

TM explains why it sold KL Tower to HydroShoppe, but did not mention why it was sold at a mere RM3.8 million

NewsTM explains why it sold KL Tower to HydroShoppe, but did not...

Earlier this week, Communications and Digital Minister Fahmi Fadzil called for an investigation into the alleged sale of Menara Kuala Lumpur Sdn Bhd (MKLSB) by Telekom Malaysia to an unknown company called Hydroshoppe Sdn Bhd.

Responding to the matter, Telekom Malaysia (TM), the company that previously owned KL Tower, explains that the divestment of KL Tower is part of the company’s business transformation plan.

In TM’s official statement, the company said that it decided not to renew the tower’s concession in October 2021 as the business nature of KL Tower has changed from telecommunications services to tourism and hospitality.

It added that this is part of the company’s business transformation programme to focus its efforts and resources on strengthening its core business of telecommunications and technology.

Source: Klook

Meanwhile, the company said it had informed the government of its decision accordingly.

According to TM, the selection process for the new Concessionaire was taken by the Government and TM was informed of the appointed company to take over the shares of MKLSB and the KL Tower concession.

At the same time, MKLSB will continue to operate the concession to ensure the continuity of KL Tower operations for the Malaysian public and international visitors. The new concessionaire will also be required to remain all employees under MKLSB for a minimum of 3 years to ensure that their welfare is protected during the transition.

Source: TM

The sale was announced to the public

Contrary to the recent reports, TM said that the sale is not done quietly, referencing the announcement it made in is financial update in Q3 of 2022. The announcement said the group completed a share purchase agreement on 31 October to dispose of its 100% interest in MKLSB for consideration of RM3.8 million.

TM reiterated that it practices good governance and transparency in its business undertakings to preserve the interest of its customers and stakeholders.

On 29 December, the Malaysian Anti-Corruption Commission (MACC) launched a probe into the sale of MKLSB.

The iconic landmark serves as a tourist attraction that generated RM66 million in revenue in 2019 and recorded a net profit of RM25 million, but it was sold for only a mere RM3.8 million.

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