TRI board to change on Wednesday

By Jane Searle

KUALA LUMPUR, Malaysia (CNN) -- Telekom Malaysia is expected to have four new directors on the board of Technology Resources Industries (TRI) after a meeting Wednesday.

TRI, once the corporate vehicle of high-profile entrepreneur Tajudin Ramli, controls Malaysia's second largest mobile phone operator, Celcom.

But Tajudin lost control of the company earlier this year after he was forced to forfeit part of his stake to a state agency.

State-owned Telekom Malaysia, which recently took a 31 percent stake in TRI, wants to merge its own mobile phone arm, TM Cellular, with Celcom.

Tajudin and three other directors allied with him -- Bistamam Ramli, Lim Kheng Yew and Mohamed Ali Yusoff -- will step down at Wednesday's board meeting.

Four nominees

TRI said in a statement late Monday that the four are expected to be replaced by four Telekom Malaysia nominees -- Md Khir Abdul Rahman, Mohd Munir Abdul Majid, Lim Kheng Guan and Rosli Man.

TRI also said an independent committee was likely to be formed to evaluate the proposed merger of Celcom and TM Cellular.

"The incumbent directors are committed to facilitating a smooth transition and to expeditiously conclude the negotiation and valuation process by end August 2002," TRI said.

On conclusion of the sale and purchase agreement, it is expected that Telekom Malaysia will make a general offer for TRI shares at no less than 2.75 ringgit a share.

Turbulent history

Tajudin and Telekom have clashed since Telekom snapped up the tycoon's forfeited 13 percent stake in TRI, which was sold by a state agency after he defaulted on 1.4 billion ringgit ($368 million) in personal loans.

Tajudin had resisted Telekom's takeover bid and last week stopped Telekom officials from entering an annual shareholders meeting, where the telco planned to seize control.

His move sparked threats of legal retaliation from Telekom and inflamed public debate about corporate governance and minority shareholders' rights.

Telekom shares traded Tuesday afternoon at 8.00 ringgit, up 1.9 percent from Monday's close. TRI shares are suspended and last traded at 2.58 ringgit.