Green Packet increases stake in G3 Global

PETALING JAYA: Green Packet Bhd has acquired 82.5 million rights shares in G3 Global Bhd for RM12.38mil.

In a filing with Bursa Malaysia yesterday, Green Packet said it had on Sept 8 acquired 41.25 million shares in G3 Global via an off-market direct business transaction for RM4.125 million and subsequently subscribed to another 41.25 million shares for RM8.25mil or 20 sen per share.

“The acquisition is in line with the company’s direction to make further strategic investment to strengthen the group’s ICT (information and communications technology) equipment business,” said Green Packet, adding that the acquisition was funded by internally generated funds.

Green Packet, a communication and technology services firm, said its shareholding in G3 Global is expected to increase from 22% to 32%.

G3 has undertaken a renounceable rights issue of up to 275 million new shares on the basis of two rights shares for every one existing share held, together with up to 206.25 million free detachable warrants on the basis of three warrants for every four rights shares subscribed.

Prior to this rights issue, Taiwanese global provider of wireless broadband solutions and Internet of Things (IoT) player, Gemtek Technology Co Ltd was the single largest shareholder of G3 with a 30% stake.

Gemtek’s entry into G3 last year sealed the latter’s position in the telecommunications, and specifically IoT space

In January 2016, former apparel manufacturer G3 said it was moving into the telecom- munications space with the acquisition of VLT Wholesale Sdn Bhd, which is now renamed Atilze.

Subsequently in April, Atilze inked a partnership with Gemtek Technology Co Ltd to market the latter’s telecommunication products in the area of broadband, LTE and IoT.

Gemtek is a global manufacturer of connectivity devices, which also contract manufactures close to 30% of Green Packet’s branded products.

Meanwhile, Green Packet Bhd narrowed its second quarter net loss to RM5.53mil, compared with RM31.76mil a year ago for its second quarter to June 30, 2017. It posted a second quarter revenue of RM82.69mil, up 7% from RM77.53mil in the corresponding quarter of 2016.