TM partners with Green Packet and SK Telecom

Telekom Malaysia (TM) today entered into an investment agreement with Green Packet and SK Telecom to collaborate on developing a next-generation LTE infrastructure to offer customers a full-suite of converged communications services.

The agreement will establish a partnership framework for the three parties to share in the ownership and collaborate in the future growth of P1, Malaysia’s leading WiMAX provider. The parties will seek to leverage on LTE technology to deliver high-quality and reliable data services across all segments of the community.

P1 will capitalise on its spectrum assets, existing wireless platform and network footprint of close to 2,000 sites, and experienced management and organisation to expedite its entry into the LTE space.

Witnessed by YB Dato’ Sri Ahmad Shabery Cheek, minister of communications and multimedia, Dato’ Sri Dr Halim Shafie, chairman of TM, and Tan Sri Datuk Dr Haji Omar Abdul Rahman, chairman of Green Packet, the principle terms of the partnership deal was signed by Tan Sri Zamzamzairani Mohd Isa, group chief executive officer, TM, Puan Chan Cheong, group managing director and group chief executive officer, Green Packet, A Shukor SA Karim, chairman, P1 and Jung Ho Park, executive vice president and chief growth officer (CGO), SK Telecom.

TM group chief executive officer, Tan Sri Zam said, “We are further expanding our capabilities into the adjacent wireless broadband space, as a natural evolution of our suite of internet and data services, in order to better serve our customers’ needs. 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”.

In addition, the partnership framework will see each party contribute its unique strengths into P1 in order to offer customers high-quality wireless data services with an overall better customer experience. TM, as the leading fixed-line and broadband provider in Malaysia, will anchor the growth and development of P1’s business.

SK Telecom, the number one South Korean mobile operator in one of the most advanced LTE markets globally, will contribute valuable technical and strategic know-how. Green Packet, a global player in 4G devices, founded and led P1 to become a leading WiMAX player, and will ensure P1’s business continuity. This transaction brings together three complementary partners who will collectively work towards achieving the shared vision of delivering converged communications services.

On the partnership, Green Packet’s Group CEO, CC Puan added, “We welcome the entry of TM as a strategic shareholder alongside us and SK Telecom. This union of P1, the innovative and enterprising challenger, with big name giants in the telecom sector, is a positive on many levels.”

Jung Ho Park, executive vice president & chief growth officer of SK Telecom said, “We are pleased to share our extensive expertise and knowhow in LTE, accumulated in Korea. We believe that the launch of LTE network in Malaysia will bring enhanced experience and value to the Malaysian customers via a whole new array of new and innovative services that take advantage of the ultra-fast network.”

As part of the Investment Agreement, TM will initially invest RM350 million into P1 via the subscription of new ordinary shares to make TM the majority shareholder with an estimated 57 percent stake, with Green Packet and SK Telecom remaining as key strategic shareholders of P1 upon completion. TM will additionally invest up to RM210 million into Green Packet via newly issued redeemable exchangeable bonds, which may be exchangeable into Green Packet’s stake in P1 in the future.

The investment agreement will come into effect upon completion of all conditions precedent, including the relevant regulatory and Green Packet shareholders’ approvals. Subject to all such approvals being obtained, the investment agreement is expected to be completed within the next few months.

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