Telekom Malaysia (TM) is back in the mobile market after Green Packet’s shareholders approved the sale of a controlling stake in local WiMax operator Packet One (P1).
The MR350m (US$106.3m) deal gives the incumbent a 56.8% stake in Malaysia’s fifth…
Telekom Malaysia (TM) is back in the mobile market after Green Packet’s shareholders approved the sale of a controlling stake in local WiMax operator Packet One (P1).
The MR350m (US$106.3m) deal gives the incumbent a 56.8% stake in Malaysia’s fifth largest mobile operator.
It sees the stake held by former controlling shareholder Green Packet being cut from 57.9% to 30%, while the share held by South Korea’s SK Telecom is falling from 27% to 13.1%. Other minority shareholders, such as US technology giant Intel, have exited the business.
Telekom Malaysia is set to launch an LTE service today in Kedah to the north of Malaysia, according to local reports citing press invites.
The service, which will be branded TMgo, will be based on 850 MHz spectrum. It marks a significant shift in strategy for the telco after it got rid of its mobile operations in 2008.
Meanwhile, Green Packet is set to issue MR210m (US$63.7m) of exchangeable bonds to Telekom Malaysia, which are expected to be bought back rather than converted into Green Packet’s shares after five years.
Green Packet was advised by RHB Investment Bank and JP Morgan, while Telekom Malaysia hired CIMB Investment Bank and Goldman Sachs.
