M&A deal involving P1 said to be progressing

28 Jan 2014

A mergers and acquisition deal involving Malaysia’s Packet One Networks (P1) is said to have moved closer, with the Star Online, citing banking sources, claiming that legal documents have been drafted by advisers. It remains unclear which company will either partner with or purchase the WiMAX provider, though it is believed that it is one of either fixed line incumbent Telekom Malaysia or DiGi Telecommunications.

As previously reported by CommsUpdate, in June 2013 P1 owner Green Packet was said to be examining a number of options regarding its wireless broadband unit. While the company confirmed it could consider selling a stake in P1 to a strategic investor, alternatives were reportedly being considered, including an initial public offering (IPO), or a merger or collaboration. Subsequently, hot on the heels of suggestions in September 2013 that DiGi could make a bid for P1, later that same month the latter’s owner denied that an offer had been made. However, in its reply to a Bursa Malaysia query the company did note that, with a view to maximising shareholder returns, it would ‘continuously pursue possibilities of collaborations and partnerships to complement the company’s business strategy’.

Malaysia, Digi Telecommunications, Telekom Malaysia, webe (formerly Packet One Malaysia)