KUALA LUMPUR (Sept 7): Telekom Malaysia Bhd's (TM) wholly-owned unit Mobikom Sdn Bhd has subscribed to RM495 million nominal value of the second tranche issuance of the convertible medium term note (CMTN), under the CMTN programme issued by webe.

In a filing with Bursa Malaysia today, TM said the proceeds of this CMTN subscription will be utilised to fund the implementation of webe's business plan.

"As a result of Mobikom's subscription to the CMTN, TM's (via Mobikom) shareholding in webe on a fully diluted basis is 82%, while Green Packet Bhd (via Packet One Sdn Bhd) and SK Telecom Co Ltd [are] 13.2% and 4.8% respectively, under the terms of the Investment Agreement," it said.

However, TM's shareholding in the ordinary equity of webe remains at 72.9%, subject to further conversion of the CMTNs and/or exchange and conversion of the exchangeable medium term note (EMTN) into webe's shares.

TM officially launched webe in mid-August.

According to webe's website, the new digital mobility services provider's mobile plan will be providing subscribers with never-ending data, calls and SMS, with no contract, from as low as RM79 per month.

Two years ago, TM put in RM350 million into P1 in exchange for shares, as a doorway to the mobile telephony market. P1 has in total 50MHz of spectra in the 2300MHz and 2600MHz bands, according to the company, which it plans to use for the fourth generation long-term evolution (4G-LTE) connection.

Shares of TM closed unchanged at RM6.89 today, for a market capitalisation of RM25.89 billion.