KUALA LUMPUR (Mar 26): Telekom Malaysia Bhd (TM) has signed an agreement with Nusajaya Tech Park Sdn Bhd (NTPSB) for the purchase a 7.94-acre piece of freehold land within Nusajaya Tech Park in Iskandar Malaysia, Johor and the construction of a data centre and office infrastructure for RM137.9 million.

In a filing with Bursa Malaysia today, TM (fundamental: 1; valuation: 0.9) said a service agreement was also entered between the two companies, which will see TM providing connectivity services into Nusajaya Tech Park.

"The provision of UniFi services will be based on a smart partnership model, at a total value of RM1.96 million," it said.

The group said the signing of the agreements will pave the way towards realising the aspiration of a ‘Nusajaya smart city’.

"Following these agreements, TM will play an integral role in establishing the eco-system to elevate Nusajaya into becoming Malaysia’s model of a completely modern digital city by bringing in world class telecommunications and ICT services, placing Nusajaya as a strategic commercial hub in the region," it added.

NTPSB is a joint venture between Ascendas Land (Malaysia) Sdn Bhd and UEM Land Bhd, where the equity ratio is 60% and 40% respectively. The company is mandated to promote, coordinate and drive the overall development of Nusajaya Tech Park.

Shares of TM closed 0.28% or 2 sen lower at RM7.15 today, translating to a market capitalisation of RM26.59 billion. 

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)