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Malaysia : Wong & Partners Advises TM on Its Partnership with Green Packet and SK Telecom to Develop Malaysia's Next-Gen Converged Communications... [TendersInfo (India)]
[April 15, 2014]

Malaysia : Wong & Partners Advises TM on Its Partnership with Green Packet and SK Telecom to Develop Malaysia's Next-Gen Converged Communications... [TendersInfo (India)]


(TendersInfo (India) Via Acquire Media NewsEdge) Malaysia : Wong & Partners Advises TM on Its Partnership with Green Packet and SK Telecom to Develop Malaysia's Next-Gen Converged Communications Services Wong & Partners, a member firm of Baker & McKenzie International in Malaysia, advised Telekom Malaysia Bhd. (TM), a leading fixed-line and broadband provider, on its Investment Agreement with Green Packet Bhd. (Green Packet) and SK Telecom Co., Ltd. (SK Telecom), to collaborate on developing a next-generation Long-Term Evolution (LTE) infrastructure for converged communications services in Malaysia.



TM, through its wholly owned subsidiary Mobikom Sdn. Bhd., entered into the Investment Agreement on 27 March 2014 with Green Packet, a global player in 4G devices, and SK Telecom, the number one South Korean mobile operator in one of the most advanced LTE markets globally. Green Packet and SK Telecom currently have equity interest in Packet One Networks (Malaysia) Sdn. Bhd. (P1), a leading WiMAX player, which operates the 4G service.

As part of the Investment Agreement, TM will invest RM350 million into P1 via the subscription of new ordinary shares to make TM the majority shareholder with an estimated 57 percent stake, with Green Packet and SK Telecom remaining as key strategic shareholders of P1 upon completion. TM will also invest up to RM210 million into Green Packet via newly issued redeemable exchangeable secured bonds, which may be exchangeable into Green Packet s stake in P1 in the future. In addition, TM, Green Packet and SK Telecom will subscribe for the redeemable convertible unsecured bonds to be issued by P1 to raise up to RM1.65 billion toward the roll-out of the LTE network and operation.


Munir Abdul Aziz, partner in the Firm s corporate and commercial practice in Malaysia, led the team on the corporate aspects of the deal. He was assisted by senior associate Teo Ee Von, who was the lead associate on the transaction. Partner Mark Lim, who heads the finance and projects practice at Wong & Partners, and partner Esther Chik advised on the structuring and finalisation of the terms of the exchangeable bonds to be issued by Green Packet and convertible bonds to be issued by P1.

"This was an extremely challenging and complex deal, which involved a variety of corporate, financing and regulatory matters and is groundbreaking by virtue of the range of innovative features in its structure and terms. This deal will result in a new major 4G LTE service provider in Malaysia and heralds an exciting new era in the broadband communications industry," said Munir.

We are pleased with the successful outcome of this deal and are privileged to have had the opportunity to advise on the intricate structuring of this investment, which involved a strategic combination of exchangeable bonds and convertible bonds, Mark added.

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