DiGi, Green Packet in talks on 4G tie-up? DiGi.Com Bhd, the country's smallest mobile phone operator, is courting Green Packet Bhd for a potential tie-up that will allow the telco to widen its spectrum base and roll out 4G services by as early as next year. Last month, DiGi, which is 49 per cent owned by Norway's Telenor ASA, tipped the market that it was on the prowl to acquire a 900 MHz spectrum. Talk on the possibility of DiGi entering into RM1 billion deal to acquire Packet One Networks Sdn Bhd, which is 61 per cent owned by Green Packet, has excited the market. Green Packet shares were snapped up yesterday on anticipation of the sale. Packet One, the country's first WiMAX (Worldwide Interoperability for Microwave Access) service provider, could inject between RM700 million and RM1 billion into the parent. Early this year, Green Packet was open on the possibility of a sale, as the company doubled its efforts to cut cost, which led to more than 90 staff being laid off in March. Business Times understands that talks between DiGi and Green Packet involve two possibilities - an outright sale of Packet One or a platform lease sharing deal. "DiGi favours a platform-sharing arrangement as the RM700 million price tag for Packet One does not make sense, as Green Packet's market capitalisation is less than half of that," said a source. Apart from Maxis Bhd and Celcom Axiata Bhd, four others that have spectrum of that magnitude are Asiaspace Sdn Bhd, Packet One, REDtone and YTL Communications. DiGi's lack of fire power in terms of spectrum could see the company fall behind in the race to offer the best 4G services in Malaysia. As it is, Maxis and Celcom have teamed up with the likes of U Mobile, REDtone and Altel Communications Bhd in platform-sharing deals to roll out 4G services. 4G refers to mobile broadband services using next generation technologies such as LTE (Long Term Evolution) and WiMAX.
TP 0.65 by year end if base of the P1 market value RM1.5-RM2.0B. Digi must buy it. If not it will loose its market share to Maxis & Celcom if Digi did not act by end of the year.
jjoker, yes high premium but for trading its worth the risk..it goes up the same 5 cts as the mother share..and u r not going to hold till expiry to exercise for the mother shares anyway..i am also holding the mother share too..good luck
messi barca..last week's press release was GPac said it has not received any offer so far??.theres no denial of any nego or discussion.?? pls elaborate if u read it somewhre??..
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3140 views | 3 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
patgim
10 posts
Posted by patgim > 2012-10-17 14:14 | Report Abuse
Why no announcement?