TM denies interest but P1 still in limelight

PETALING JAYA: Packet One Networks (M) Sdn Bhd (P1), the mobile broadband operator unit of Green Packet Bhd, continues to be in the limelight, this time with the country’s incumbent telecommunication company, Telekom (M) Bhd strongly denying a news report that it was seeking approval to bid for P1.

Over the week, speculative reports had indicated there were a number of bidders for P1, with a bank having been appointed to look for interested buyers.

But, with TM’s denial of interest, it is left to be seen if a deal to sell P1 will go through or will Internet service provider Green Packet revert to its original plan of floating P1 to aid cashflow.

“With P1 turning EBITDA positive recently, it should be in a good position for a listing,” said one source.

In fact, he added, bankers had already been hired to look into this option of listing to raise capital.

Green Packet has reportedly spent more than RM1bil in investments for P1’s 4G deployment plans and activities and, as a result, has suffered a setback where its cashflow is concerned.

Green Packet itself said over the week that it declined to comment on speculation of any sort but added that it was exploring strategic alternatives that might include the possibility of merger, consolidation, to sell a stake and other options to maximise shareholders value.

So far, no discussions had commenced or have definitive terms been discussed or concluded, it said.

Meanwhile, rumours continue to swirl and another player said to be also interested in P1 is DiGi. Com Bhd. Buying over P1 will give DiGi access to a 2.3 GHz spectrum licence to deploy 4G WiMAX services nationwide while, for TM, it will allow it to penetrate into the mobile broadband business which will complement its fixed broadband services and WiFi offerings.

The four current WiMAX players in the country are P1, Asiaspace Sdn Bhd, REDtone International Bhd and YTL Communications Bhd, while there are four 3G players – DiGi, Celcom Axiata Bhd, Maxis Bhd and U Mobile Sdn Bhd.

Green Packet shares had attracted immense interest this week amid all the speculation, surging to a multi-month high of 65 sen on Wednesday.

However, investors and traders had since started to sell off the stock in view of the lack of clarity, with the stock closing at 58.5 sen yesterday.

TM shares, meanwhile, finished flat at RM6.05. StarBiz had earlier reported that the YTL Group had also approached Green Packet for a possible merger and acquisition exercise to which YTL had said that it was “always in talks” with its fellow players but had not moved beyond that.