Malaysia: Sapura to close 4 telco units

KUALA LUMPUR--Communications company Sapura Telecommunications Bhd (STB) plans to close down four loss-making units to shore up its financial performance.

"We are evaluating all options. We can either sell or wind down the businesses. The move, however, must benefit our shareholders," director Shukor Karim said after the company's annual general meeting on Wednesday.

The New Straits Times' business section said Sapura's telco activities posted a loss of RM22 million (US$7.79 million) for the financial year ended Jan 31 2001.

The company's telco business had also recorded a loss of about RM7 million (US$1.84 million) for the first three months to April 30 2001.

Shukor said Sapura may spend up to RM7 million (US$1.84 million) to conduct a restructuring exercise if it shuts down four telco-related units.

We have to put a stop to these losses. If we spend between RM6 million and RM7 million (US$1.58 million and US$1.84 million) to close them down, we may not have to incur losses in the future," he added.

Shukor said the company was still waiting for the outcome of its joint-bid with Malaysia Airports Holdings Bhd to supply a management system to the Bangkok International Airport.

Sapura supplied the management system to the Kuala Lumpur International Airport.