Green Packet shareholders approve P1 investment agreement

PETALING JAYA: Shareholders of Green Packet Bhd approved Packet One Networks (Malaysia) Sdn Bhd's (P1) investment agreement between Green Packet, Telekom Malaysia Bhd (TM) and Korea's SK Telecom at an EGM yesterday.
The group expects the investment agreement, which was announced earlier on March 27, to be completed within the third quarter of this year.
At completion, TM will initially invest up to RM560 million, of which RM350 million will be invested into P1 via the subscription of ordinary shares and RM210 million will be invested into Green Packet via newly issued exchangeable bonds, which may be exchanged for Green Packet's stake in P1 in the future.
The strategic partners are expected to invest a further RM1.65 billion for P1's LTE roll-out.
"The strong shareholder support received today sets a clear path for P1 to grow to its fullest potential and realise its future business plan and LTE transition. Green Packet will benefit from P1's direct entry into the mobile market which instantaneously grows P1's addressable market size to RM34.5 billion, a four times growth," Green Packet group managing director CC Puan said in a statement yesterday.
The group said Green Packet's financials is significantly lifted from having to support P1's operations and the strategic gain will be re-injected to scale profitable areas of the group's business namely, its solutions and communications pillars.
It added that Green Packet Solutions will aggressively ramp up its LTE device portfolio to cater to growing global demands while the group's communication services, NGT Networks will invest to grow connectivity routes to more countries.
"LTE telcos buying from us grew over 360% from 2013 to date, ramping up our product portfolio will enable us to grow even more rapidly. Compared with WiMAX, we will begin to gain access to Tier-1 telcos which are in favor of LTE.
"Achieving growth for the communications pillar is straightforward; establishing new routes for NGT Networks will naturally grow traffic volume and revenue," said its group COO Kay Tan.