The deal will see Telekom Malaysia invest $107 million in P1, as well as $64 million to acquire exchangeable bonds from Green Packet, the current majority shareholder.
South Korea’s SK Telecom said it would remain a key shareholder in the company following TM’s entry.
The deal will allow P1 to expand its mobile business and expand its 4G mobile presence.
“TM will anchor the growth and development of P1, while Green Packet will render its management expertise to ensure P1’s business continuity and development of LTE devices. SK Telecom, meanwhile, will contribute its technical know-how,” said Tan Sri Zamzamzairani Mohd Isa, CEO of Telekom Malaysia.
In addition, the move is expected to boost TM’s LTE infrastructure and services, allowing access to P1’s customer base and infrastructure.
“We are further expanding our capabilities into the adjacent wireless broadband space as a natural evolution of our suite of internet and data services, to better serve our customers’ needs,” said Zamzamzairani.
“The partnership provides an LTE-ready platform for us to more efficiently roll out wireless broadband products and accelerate time-to-market for our customers,” he added.
P1 owns valuable wireless spectrum – including 30MHz in the 2300MHz band – and was one of the eight companies to be awarded with 20MHz of the 2600MHz spectrum suitable for 4G last year.
The agreement is expected to be finalised in the next few months.
