Shares in the country's number two mobile phone operator Technology Resources Industries Bhd (TRI) dipped early Thursday after news the company paid RM38.7 million to three former directors prior to their resignations, dealers said.

The company is demanding repayment of the amount, which includes a RM23.4 million payment to former chairman and chief executive Tajudin Ramli ( photo ).

At the morning close on the Kuala Lumpur stock exchange, TRI was down RM0.02 ringgit at RM2.43 on volume of 401,000 shares.

"This is a negative development for TRI. As the company said, (this) will have an impact on its earnings this year. It will slash my net profit forecast of RM311 million it by 12 percent," a telecommunications analyst with a local brokerage said.

The payments were made to Tajudin, Lim Kheng Yew and Bistamam Ramli on July 3 before the appointment of new directors comprising Telekom Malaysia's nominees.

Tajudin and Telekom Malaysia were involved in a boardroom tussle after the latter initially failed to secure board representation despite holding a 31.25 percent stake in TRI.

TRI said the new board only became aware of the payments after the minutes from the July 3 directors' meeting were presented to the new board for confirmation, who then sought legal advice on the matter.

"I don't think the market would normally have been too concerned on the 'golden handshake' payout but this is a really huge sum," the analyst said. AFP