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TM said to secure P1 stake

26 Mar 2014

Telekom Malaysia™ has reportedly emerged as the successful bidder in the stake sale conducted by Green Packet for its mobile broadband service provider Packet One Networks (P1), according to the Malaysian Reserve. Citing a source familiar with the deal, it has been claimed that Green Packet will make a formal announcement regarding the sale later this week, with the source noting: ‘All details of the deal are being finalised. A signing ceremony between Green Packet and TM will be held soon,’ adding: ‘TM is buying a portion of Green Packet’s stake in P1.’ Based on earlier speculation, it is expected that TM will pay more than MYR2 billion (USD605 million) for the stake.

In January 2014 CommsUpdate reported that a mergers and acquisition deal involving Packet One Networks (P1) had moved closer, with local press, citing banking sources, claiming that legal documents had been drafted by advisers. However, at that date it remained unclear which company would either partner with or purchase the WiMAX provider, though it was suggested that it would likely be either TM or DiGi Telecommunications. Previously, 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 said to be under consideration, 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, Telekom Malaysia, webe (formerly Packet One Malaysia)

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