Malaysia's Tamco says not decided on payout amount

KUALA LUMPUR Tue Nov 6, 2007 2:57am GMT

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KUALA LUMPUR Nov 6 (Reuters) - Malaysian technology firm Tamco Corporate Holdings Bhd TAMH.KL denied on Tuesday a newspaper report that it planned to return as much as 50 Malaysian cents a share to shareholders. The Business Times reported on Monday that a decision on the payout was made last Wednesday at a board meeting.

"The newspaper report was totally wrong," Tamco Managing Director Abdul Latif Mahamud told Reuters. The board never made a decision. There was never a board meeting,"

Tamco has said it planned to return part of the proceeds from the sale of its switchgear business to shareholders. Tamco is selling its switchgear businesses in Malaysia, Australia, China and Indonesia to India's biggest engineering company Larsen & Toubro Ltd (LART.BO) for 378 million ringgit ($112.9 million).

"Yes, we have decided to pay out some money, but we have not decided on the quantum. We have not decided on anything yet," Abdul Latif said.

He said the board would meet in December to discuss the payout. Tamco shares were down 0.6 percent at 0.89 ringgit by 0255 GMT on Tuesday. ($1=3.347 Malaysian Ringgit)