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Telekom Malaysia closer to P1 acquisition

11 Aug 2014
00:00
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Shareholders in Malaysia's Green Packet have approved the planned joint investment in wireless broadband unit P1 by the company, Telekom Malaysia and SK Telecom.

Under the agreement, Telekom Malaysia will invest up to an initial 560 million ringgit ($175 million) into Green Packet in exchange for a controlling 57% stake in P1.

Of the initial investment, 350 million will be spent on the acquisition of the P1 stake, and the remainder will be invested in bonds exchangeable for more of Green Packet's shares.

The three companies are also planning to invest a further 1.65 billion ($515.6 million) ringgit towards P1's LTE rollout over the next few years. P1 plans to transition into a TD-LTE operator.

SK Telecom is a minority shareholder in P1, having paid $100 million for a 25.8% stake in 2010.

Green Packet group managing director CC Puan said P1's direct entry into the mobile market will instantly grow the company's addressable market size fourfold to 34.5 billion ringgit.

P1, Telekom Malaysia, Green Packet and SK Telecom first agreed to the joint investment deal in March this year.

The announcement came as Telekom Malaysia launched its own LTE services. The company launched 4G broadband offering TMgo in Alor Setar, Tegah on Friday.

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