Telekom Malaysia upping stake in webe via Mobikom unit

Telekom Malaysia is increasing its stake in webe (formerly Packet One Malaysia), doing so by subscribing to MYR495 million (USD122 million) convertible medium term notes (CMTNs) via its Mobikom unit, according to The Star Online. TM had previously boosted its holding in webe back in February this year, from 55.3% to 72.9% after an early conversion of the first-tranche CMTNs issued by the wireless service provider. Subject to the conversion of these second-tranche notes into shares, the move will bring TM’s stake – via Mobikom – to 82%, as a result of which Green Packet and South Korea’s SK Telecom would see their holdings reduced to 13.2% and 4.8%, respectively. However, TM’s shareholding in the ordinary equity of webe remains at 72.9%, subject to further conversion of the CMTNs and/or exchange and conversion of the exchangeable medium term notes (EMTNs) into webe’s shares, the report notes. In a filing with Bursa Malaysia regarding the matter, TM was cited as saying: ‘The proceeds of this CMTN subscription will be utilised to fund the implementation of webe’s business plan.’