PETALING JAYA: Telekom Malaysia Bhd’s (TM) wholly-owned subsidiary, GITN Sdn Bhd, has accepted a notification letter of implementation from the government to extend the MyGov*Net concession for another 10 years.
The RM4.9 billion extension was for the period starting from Jan 1, 2023 until Dec 31, 2032.
MyGov*Net will contribute positively to the earnings and net assets of TM group for the current financial year ending Dec 31, 2023 and over the concession period.
“However, the new concession is lower in value compared to previously with impact on the earnings of TM group over the concession period,” TM said in a filing with Bursa Malaysia today.
MyGov*Net is an integrated telecommunication network that connects more than 10,000 government premises in Malaysia and Malaysian embassies overseas.
This secured and dedicated government network integrates with the intranet, internet, government campus network and public sector data centre.
TM’s share price fell seven sen to RM5.23 today, giving it a market capitalisation of RM19.98 billion.