Telekom Malaysia Bhd rose to its highest level in more than a month after the fixed-line operator said it plans to sell its 2.27 per cent stake in Axiata Group Bhd.

The stock climbed 1.5 per cent to RM3.50 at 9.11 am in Kuala Lumpur trading, set for its highest close since October 12.

The stake sale plan raises the odds of special dividends next year, Lim Tee Yang, an analyst at RHB Research Insititute Sdn Bhd said in a report today.


TM may have raised RM414 million by selling 90 million shares of Axiata, two people with knowledge of the transaction said.

The shares were sold at RM4.60 each, said the people who couldn't be identified because the information was confidential. CIMB Investment Bank Bhd and Credit Suisse Group AG managed the sale, they said.

Telekom said in a stock exchange filing last night that it plans to dispose a total of as much as 191.5 million shares in Axiata through private placements and on the open market. - Bloomberg