P1 DEAL TO IMPROVE GPB OVERALL BUSINESS
KUALA LUMPUR, 7 August 2014: The shareholders of Green Packet Berhad (“GPB/ The Group/ Group”) met today at an Extraordinary General Meeting (“EGM”) and passed the proposed Packet One Networks (Malaysia) Sdn Bhd (“P1”) investment agreement between GPB, Telekom Malaysia Berhad (“TM”) and SK Telecom.
The investment agreement to jointly invest into P1 announced earlier on March 27 is set for completion within quarter three of this year on the resolution being passed. At completion, TM will initially invest up to RM560m, of which RM350m will be invested into P1 via the subscription of ordinary shares and RM210m 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 RM1.65b for P1’s LTE roll-out and operations over the next few years.
Group Managing Director, CC Puan said “The strong shareholder support received today sets a clear path for P1 to grow to its fullest potential and realize its future business plan and LTE transition. GPB will benefit from P1’s direct entry into the mobile market which instantaneously grows P1’s addressable market size to RM34.5b, a four times growth”.
GPB’s financials is significantly lifted from having to support P1’s operations and this strategic gain will be re-injected to scale profitable areas of the Group’s business; namely, The Group’s Solutions’ and Communications pillars. 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.
Group Chief Operating Officer, Kay Tan said “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.