Will this Impact Time Engineering?

TIME dotCom Bhd (TdC), through wholly-owned subsidiary, Hakikat Pasti Sdn Bhd, has disposed of 27.75 million shares in DiGi.Com Bhd for RM604.95 million, or RM21.80 apiece, via private placement.

CIMB Investment Bhd, in an announcement to Bursa Malaysia on behalf of TdC, said the sale would reduce TdC's interest in DiGi.Com to 27.5 million shares, or 3.5 per cent.

“The disposal will result in an estimated gain about RM5.33 million (before taking into account tax effects, if any) to TdC for the financial year ending Dec 31, 2009,” it said.

It said TdC was also expected to enjoy pre-tax interest savings of RM23.4 million per annum going forward as a result of the full repayment of bank borrowings with the net proceeds from the disposal.

"However, it will no longer enjoy any future dividends declared on the shares disposed," it said.

On the rationale for the disposal, CIMB said market conditions had improved recently, as evidenced by the performance of the FTSE Bursa Malaysia KLCI Index, which has been recording an uptrend since its 52-week low of 829.41 points on Oct 29, 2008 to 1,171.09 points on Aug 25, 2009.

It said the price performance of DiGi.Com shares had improved from their 52-week low of RM17.32 on Oct 31, 2008 to RM21.98 on Aug 25, 2009.

CIMB said given the current improved market conditions and DiGi's share price, and in line with its prudent debt management practices, TdC has decided to fully settle its borrowings which were taken to finance its investments in securities.

"The disposal will enable the TdC group to raise funds to achieve this objective," it said.

So how would this new development going to impact upon a newly restructured Time Engineering Berhad? would its share in TdC be worth much more now?