By Sharen Kaur and Francis Fernandez
Published in NST on October 19, 2012
Telekom Malaysia Bhd, the country's biggest phone company, is seeking approval from the Finance Ministry to make a RM1.8 billion bid for Green Packet Bhd's wireless broadband unit, Packet One Sdn Bhd (P1).
Business Times understands that the company sought the approval yesterday.
Green Packet is the first company to launch commercial WiMAX services in Malaysia via P1.
Thus far, YTL Corp's Yes mobile and U Mobile, a company linked to Tan Sri Vincent Tan, have also been touted as possible suitors of P1.
Speculation has been rife that Green Packet is looking to dispose of P1 but the company was noncommital in a statement to the stock exchange on Wednesday.
But late yesterday, Green Packet came out with another reply.
This time, it told Bursa Malaysia that it is exploring strategic alternatives for P1, including the possibility of a merger, consolidation, sale of stake and other options to maximise shareholders' value.
"To date, we have not received any bids to purchase our shareholdings in P1," Green Packet added.
However, an influential shareholder of Green Packet told Business Times that selling P1 will be of strategic interest.
The shareholder also confirmed that the company has received several offers for P1.
Business Times understands that P1 - a converged telecommunications, broadband and 4G service provider - has invested more than RM1.2 billion to expand its network.
The investment begun in 2007 when P1 became one of four companies awarded 2.3 GHz spectrum licences by the government to deploy 4G WiMAX services nationwide.
Launched in August 2008, P1 represents the first large-scale commercial deployment of mobile WiMAX in Southeast Asia.
But as a result of the investments, Green Packet has been bleeding red ink for the past five years.
The company last registered a net profit in 2007, when it posted a RM27.16 million gain. For the six months ended June 30 2012, it suffered a net loss of RM168.22 million.
P1 has 400,000 subscribers for its fixed, wireless broadband and fibre optics services, giving it a 34 per cent broadband market share as at end of March this year.
The company is expecting to achieve 500,000 subscribers by year-end.
Green Packet is the first company to launch commercial WiMAX services in Malaysia via P1.
Thus far, YTL Corp's Yes mobile and U Mobile, a company linked to Tan Sri Vincent Tan, have also been touted as possible suitors of P1.
Speculation has been rife that Green Packet is looking to dispose of P1 but the company was noncommital in a statement to the stock exchange on Wednesday.
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This time, it told Bursa Malaysia that it is exploring strategic alternatives for P1, including the possibility of a merger, consolidation, sale of stake and other options to maximise shareholders' value.
"To date, we have not received any bids to purchase our shareholdings in P1," Green Packet added.
However, an influential shareholder of Green Packet told Business Times that selling P1 will be of strategic interest.
The shareholder also confirmed that the company has received several offers for P1.
Business Times understands that P1 - a converged telecommunications, broadband and 4G service provider - has invested more than RM1.2 billion to expand its network.
The investment begun in 2007 when P1 became one of four companies awarded 2.3 GHz spectrum licences by the government to deploy 4G WiMAX services nationwide.
Launched in August 2008, P1 represents the first large-scale commercial deployment of mobile WiMAX in Southeast Asia.
But as a result of the investments, Green Packet has been bleeding red ink for the past five years.
The company last registered a net profit in 2007, when it posted a RM27.16 million gain. For the six months ended June 30 2012, it suffered a net loss of RM168.22 million.
P1 has 400,000 subscribers for its fixed, wireless broadband and fibre optics services, giving it a 34 per cent broadband market share as at end of March this year.
The company is expecting to achieve 500,000 subscribers by year-end.
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