As such,the sale would reduce TdC's interest in DiGi.Com to 27.5 million shares, or 3.5 per cent.
The timely disposal will result in an estimated gain about RM5.33 million gross to TdC for the financial year ending Dec 31, 2009.
TdC will 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.
TdC as such will no longer enjoy any future dividends declared on the shares disposed.
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.
I think in a way this is also good for its parent company, Time Engineering Berhad.
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