State-owned communications giant Telekom Malaysia has raised its stake in mobile phone operator Celcom Malaysia to 96.3 percent after extending its general offer by an additional 14 days to June 27, a company statement said today.

As Telekom has received about 92.5 percent acceptances for its general offer, it will compulsorily acquire the remaining Celcom shares under Section 34 of the Securities Commission Act, resulting in Celcom being delisted from the Kuala Lumpur Stock Exchange.

"Even though Celcom will become a wholly-owned subsidiary of Telekom Malaysia, it will continue to operate with an independent and professional management team to ensure a successful merger integration and lead the merged entity forward," Telekom chief executive Mohamad Khir Abdul Rahman said in a statement.

Telekom is merging its own cellular operator TM Cellular with Celcom.

Biggest mobile phone operator

Mohamad Khir said that with Celcom privatised, Telekom will have greater flexibility to consider other options to realise Celcom's value.

Telekom may relist Celcom at a later date under more favourable conditions, he added.

Telekom Malaysia's initial purchase of a 31.25 percent stake in Celcom triggered a general offer at RM2.75 per Celcom share.

Telekom had said that the purchase of Celcom would create the country's biggest mobile phone entity with a subscriber base of more than three million and a 40 percent market share. - AFP