TM to buy control of P1

Dylan Bushell-Embling
28 Mar 2014
00:00

Telekom Malaysia has clinched a long-expected deal to acquire control of Wimax operator P1, and announced plans to collaborate with P1's current owners on turning the company into a TD-LTE operator.

Telekom Malaysia announced it has reached an agreement to buy a 57% stake in P1 from Green Packet for up to 560 million ringgit ($170.2 million).

Under the deal, Telekom Malaysia will pay an immediate 350 million ringgit for the 57% stake in P1, and agree to invest up to 210 million ringgit in Green Packet in the future.

Green Packet and SK Telecom – which paid $100 million for a 25.8% stake in P1 in 2010 – will remain shareholders upon completion of the deal.

The three partners revealed plans to use the partnership to accelerate P1's transition into an LTE operator using its spectrum assets and footprint of nearly 2,000 cell sites.

As part of the alliance Telekom Malaysia will take responsibility for P1's business growth, SK Telecom will contribute its LTE expertise and Green Packet will ensure P1’s business continuity.

“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,” Telekom Malaysia CEO Tan Sri Zam commented.

See related commentary Has TM bitten off too much with P1 buy?

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