Capital Group eyes Green Packet

Nicole McCormick
06 Jan 2010
00:00

A subsidiary of California-based investment management behemoth The Capital Group Companies has reportedly bought into Mesdaq-listed firm Green Packet, which owns Malaysian Wimax operator Packet One Networks (P1).

According to The Star, Capital Research and Management has bought 30 million shares in Green Packet, worth MYR34.5 million (US$10.2 million). Capital Research will emerge with around a 5% stake in Green Packet and join Intel Capital as one of Green Packet’s high-profile foreign investors.

“Capital Research wanted a substantial and much larger stake,” says TS, quoting a source close to

the firm. “But there were not enough shares to go around.

“The existing majority shareholders also took up shares to maintain their percentage ownership.”

Green Packet Holdings owns a leading 34.3% stake in Green Packet, with OSK Technology Ventures holding a 16.2% interest. In June 2008, Intel Capital emerged with a 6.3% stake in Green Packet for MYR50 million.

Green Packet’s WiMax arm P1, which launched in August 2008, had amassed about 180,000 customers at end-2009, short of its year-end target of 200,000 subscribers.

News of the Green Packet buy-in comes as the Malaysian government rallies for more affordable broadband tariffs in the country.

The Communications Ministry plans to examine broadband prices with a view to lowering them.

For their parts, Malaysian 3G players have recently culled their monthly fees. Leading cellco Maxis is offering the country’s lowest 3G tariff of MYR38 per month to customers that sign 12 month contracts.

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