We refer to the announcements dated 27 March 2014, 30 September 2014, 17 September 2015, 11 February 2016, 7 September 2016 and 28 September 2017 in relation to the Investment in webe (Announcements). Unless otherwise stated, the definitions used here shall have the same meanings as set out in the Announcements.

We wish to announce that Mobikom has entered into an agreement, with amongst others, Green Packet Berhad (GPB) in relation to the exchange of all the Exchangeable Medium Term Note (EMTN) issued by GPB and held by Mobikom for the following forms of securities held by Packet One Sdn Bhd: (i) ordinary shares of webe and (ii) Convertible Medium Term Notes (CMTN) issued by webe (Scheduled Exchange).

Upon completion of the Scheduled Exchange, TM (via Mobikom) and SK Telecom Co Ltd will hold 91.8% and 8.2% of webe’s share capital respectively.

The Scheduled Exchange will not have any material effect on the issued share capital as well as the substantial shareholders’ shareholdings of TM as it does not involve any issuance of shares or other securities of TM.

For illustrative purposes, assuming the Scheduled Exchange was completed on 1 January 2019, the proforma effects on the earnings per share (EPS), net assets (NA) per share and gearing of TM Group for the financial year ended 31 December 2019 would be as follows:

Proforma Impact on EPS, NA Per Share and Gearing

The increase in TM's shareholding in webe will allow TM to better leverage its nation building expansion initiatives in delivering broadband beyond fiber reach especially in underserved and rural areas, as well as accelerating TM’s fixed-mobile convergence aspiration.

None of the Directors and major shareholders of TM and/ or persons connected to them have any interest, direct or indirect, in the Scheduled Exchange.

This announcement is dated 24 July 2020.