Green Packet mulling options for P1

25 Jun 2013

Malaysia’s Green Packet is examining a number of options regarding its wireless broadband unit Packet One Networks (P1), the Star Online reports, citing comments made by Green Packet managing director C.C. Puan. While the company has confirmed it could consider selling a stake in P1 to a strategic investor, alternatives are being considered, including an initial public offering (IPO), or a merger or collaboration. In the meantime the executive has said that the immediate focus is to improve P1’s business operations and financial results. With a view to doing just that the company began an operational transformation exercise at the start of this year which included introducing stringent cost management and controls. Commenting on the progress of this plans, Mr Puan said: ‘We expect the exercise to have a bigger impact in the second half [of 2013]’. Meanwhile, with P1 having previously recorded capital expenditures of between MYR200 million and MYR250 million (USD61.6 million-USD77.1 million) per year, the executive has also confirmed that investment will be lower this year, noting: ‘Our CAPEX this year would be lower than the previous year because we’ll be focusing more on upgrading our software, instead of spending CAPEX [on] rollouts and subscriptions.’

Malaysia, webe (formerly Packet One Malaysia)