Monday, June 5, 2023

[Business] P1 Receives US$51 million Injection from Kendall Court & Leafgreen Capital-led Consortium

The subsidiary of Green Packet Berhad, Packet One Networks (Malaysia) Sdn Bhd (P1) recently announced that it received a structured investment funding of US$51 million from a consortium led by Southeast Asia focused investment firm Kendall Court and Leafgreen Capital to fuel its expanding broadband network and customer acquisition activities in Malaysia.

In a statement, P1 said that this marks a new stage of growth for the company, as with P1 turning EBITDA positive of RM3.3 million. Moving forward, it is timely for the company to tap into the debt market to fund P1 next stage of growth. This also means that P1 is already operationally self-sustainable as the region’s leading 4G service provider within a mere three and a half years in the business.

Chief Executive Officer of P1 Michael Lai said, “We are pleased that Kendall Court and Leafgreen Capital-led consortium members recognise and appreciate P1’s continuous aspiration to challenge, innovate and excite the Malaysian broadband market. This is a significant milestone in the competitive telecommunications industry and is testimony to P1’s thriving 4G business.”

Kendall Court Managing Partner Chris Chia said, “Broadband is a high growth sector globally. We actively support P1’s 4G initiatives with the expansion of its infrastructure as part of the strategy to encourage economic growth in Malaysia. Chia added that P1 is Kendall’s first investment in the telecommunications industry.

Lai added, ”The injection from the Kendall Court and Leafgreen Capital-led consortium will be channeled towards P1’s pursuit of delivering Broadband for All focusing on 4G network coverage, capacity expansion and enhance customer experience throughout Malaysia.”

Bernama reported that the US$51 million (RM161.17 million) long-term loan warrants for a period of 60 months. “As a condition of the facility arrangement, P1 will issue warrants with a tenure of five years, which are exercisable into maximum aggregate of 143,820 new ordinary shares of P1, in the event it undertakes an initial public offering”, according to the report.

To date, P1 covers about 53 per cent of the population and plans to cover about 65 per cent of the population by end of this year. P1’s subscriber base recorded 401 000 as of the first quarter of 2012.

Since its WiMAX service launch in August 2008, P1 has invested about US$250 million (RM750 million) in capital expenditure. In June 2010, P1 received a sum of US$100 million (RM321 million) from strategic investor SK Telecom for a 25.8 per cent equity stake.

Kugan is the co-founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy

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