Kendall Court exits Malaysian broadband provider

The deal, announced in March, saw TM acquire a 55% stake in Packet One for MYR350 million ($108 million). The telecom giant now owns 55.3%, with existing investors Green Packet and SK Telecom holding 31.1% and 13.6%, respectively. Green Packet has also issued a MYR210 million exchangeable bond to TM while the three shareholders have promised to invest up to MYR1.65 billion more through convertible bonds.

Kendall Court, which led a $51 million syndicated financing package for Packet One in August 2012 through loan and warrant instruments, has made a full exit. The capital was used to support the development of 4G networks. Packet One is Malaysia's leading WiMAX provider with more than 2,000 network sites and over 500,000 subscribers.

Under the new ownership structure, Packet One will migrate to 4G LTE and offer full mobility, while providing TM with an LTE-ready platform through which it can accelerate the roll-out of wireless broadband products. The company recently launched its first 4G broadband offering, TMgo.

"TM sees the provision of mobility solutions to customers as a natural progression in line with industry evolution towards true convergence, not just from a technology or device perspective, but more importantly from a customer experience point of view, in the delivery of end-to-end broadband and data services," the company said in a statement.

TM is the leading broadband provider in Malaysia 2.22 million subscribers at the end of 2013. Net profit for the year at group level was MYR1 billion, down from MYR1.3 billion the previous year. Revenue increased from MYR9.9 billion to MYR10.6 billion over the same period.

At the end of 2012, Kendall Court had approximately $260 million in assets under management, primarily across Indonesia, Singapore and Malaysia. The firm is a growth capital provider but invests through mezzanine structures.

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• Topics
• Exits
• Technology
• Southeast Asia
• Structured finance
• Kendall Court Capital Partners
• Malaysia
• TMT
• Exit
• Trade sale
• Southeast Asia