Telekom Malaysia (TM) has completed its MR350m (US$106.3m) purchase of local WiMax operator Packet One (P1), after securing regulatory and shareholder approvals.
The Malaysian incumbent bought a 55.3% stake from former controlling shareholder Green…
Telekom Malaysia (TM) has completed its MR350m (US$106.3m) purchase of local WiMax operator Packet One (P1), after securing regulatory and shareholder approvals.
The Malaysian incumbent bought a 55.3% stake from former controlling shareholder Green Packet and Korea’s SK Telecom, which saw their stakes fall to 31.1% and 13.6% respectively.
Other minority shareholders, such as US technology giant Intel, have exited the business.
The deal sees the incumbent re-enter the mobile market after exiting it in 2008. TM said the transaction was also an opportunity to work with Green Packet and SK Telecom to drive synergies for the three companies.
In a statement today, TM said: “It essentially enables P1 to crossover to LTE and offer full mobility while providing TM with an LTE-ready platform to accelerate and more efficiently make wireless broadband products available to its customers.
“This includes access to suitable spectrum bands, the ability to draw on advanced technological know-how of SK Telecom, an existing customer base to build on, and the strong base of LTE upgradeable WiMax sites to quickly achieve extensive LTE coverage.”
All three companies will be represented on the board, although the representatives – as well as P1’s management – have not been announced as yet.
Green Packet was advised by RHB Investment Bank and JP Morgan, while TM mandated CIMB Investment Bank and Goldman Sachs.