Joint investment in wireless broadband provider P1 was recently approved by shareholders in Malaysian telecommunications company Green Packet, Telecom Asia reports.
The companies to invest in P1 include Green Packet itself, as well as Telekom Malaysia and South Korean wireless telecommunications provider SK Telecom. Telekom Malaysia plans to invest an initial amount of 560 million ringgit (£104 million) in Green Packet under an agreement that it will receive a 57% stake in P1 in return.
SK Telecom is a shareholder in P1 as well, holding a 25.8% stake, for which it paid about £59.4 million back in 2010.
The joint investment deal was first agreed by the three companies in March 2014. The initial investment Telekom Malaysia makes will be divided in such a way that some of it will be spent on acquiring the controlling stake at P1, and some will be invested into bonds that can be exchanged for more shares of Green Packet.
Green Packet, Telekom Malaysia and SK Telecom are also thinking of investing another 1.65 billion ringgit (£306.8 million) in the LTE launch P1 is planning in the span of the next few years, as part of its transition to a TD-LTE operator.
CC Puan, Green Packet group managing director, said that P1's market share will grow sharply as the company makes a direct entry into the mobile market.
The news about the joint investment came about at the same time as Telekom Malaysia's announcement of its own LTE services roll-out. Last week the company launched its 4G broadband offering -- the TMgo service, with the aim to provide under-served areas of Malaysia with high speed broadband connectivity.