TM boosts stake in P1 through RM410.3mil subscription

KUALA LUMPUR: Telekom Malaysia Bhd (TM), through unit Mobikom Sdn Bhd, has boosted its shareholding in wireless broadband provider Packet One Networks Sdn Bhd (P1) from 55.3% to 72.9%.

In a filing with Bursa Malaysia, TM said Mobikom received 10.675 million new P1 shares following the early conversion of RM410.3mil of the medium-term notes (MTNs) that it subscribed to on Sept 15, 2015 under P1’s convertible MTN programme to raise up to RM1.65bil.

That translates to a subscription price of about RM38.44 per P1 share.

Mobikom had last September subscribed to a total of RM622.545mil nominal value of the first tranche issuance, Based on the first Bursa announcement in 2014, the issue price would have been 100% of the nominal value.

In addition, TM said, P1 issued 133,726 new P1 shares to Mobikom due to net debt adjustment in accordance to the terms of the investment agreement signed with Green Packet Bhd and South Korea’s leading telecommunications company SK Telecom Co Ltd on March 27, 2014.

With the additional 10.808 million new P1 shares, Mobikom has increased its stake in the provider of last-mile broadband network infrastructure facilities and services from 55.3% to 72.9%. The balance are currently held by Green Packet (through its unit Packet One Sdn Bhd) and SK Telecom at 18.9% and 8.2% respectively.

Green Packet informed the exchange on Thursday that its stake in P1 had been diluted from 31.1% to 18.9%. Incidentally, its unit Packet One Sdn Bhd can expand its stake later, having subscribed for RM37.455mil of nominal value of convertible MTNs which were issued and allotted on Sept 15, 2015. 

A day earlier, Green Packet had also issued an additional exchangeable MTNs comprising RM37.455mil of nominal value to Mobikom. Green Packet used the proceeds from this subscription by Mobikom to subscribe to the first tranche of convertible MTNs issued by P1.

Meanwhile, as a result of Mobikom’s subscription to the convertible and exchangeable MTNs, TM’s shareholding in P1 on a fully diluted basis became 75.1%.

P1 used to be a subsidiary of Green Packet. TM emerged as the new holding company for P1 in September 2014 with a shareholding of 55.3% following the subscription by Mobikom of new ordinary shares in the wireless broadband provider for RM350mil.

TM shares fell 3 sen to close at RM6.59 on Thursday while Green Packet shares ended unchanged at 24.5 sen.