China tech giant to emerge as Green Packet’s major shareholder
PETALING JAYA: A Chinese technology giant is set to emerge as a substantial shareholder in telecommunication and technology firm Green Packet Bhd.
Sources told Starbiz that several parties related to a technology player in China were the major takers of the several off-market transactions involving 129 million shares, or 14.2% in Green Packet since early this month.
“With the emergence of the new shareholder, we could anticipate more new developments in Green Packet, moving forward,” said a source, although he declined to name the buyers.
On Tuesday, about 62 million shares or representing a 6.86% stake in Green Packet were transacted at between 60 sen to 63 sen per share unit.
The 62 million shares changed hands in a total of 12 transactions, at a cumulative value of about Rm37.81mil.
Meanwhile, 19 million more shares or 2.1% stake were transacted yesterday at 65 sen apiece. The source said this was also related to the new Chinese shareholder.
Currently, the largest shareholder of Green Packet is founder and group managing director Puan Chan Cheong or better known as C.C. Puan. He controls 29.42% in the company.
Green Packet’s shares have surged by nearly 124% to 70.5 sen as of yesterday’s closing, hitting the highest level in eight years.
The substantial rise in its share price was on the back of the increasing value of its holdings in another tech-listed company, G3 Global Bhd. Green Packet is the single largest shareholder of G3 Global, with an equity interest of 32% valued at about Rm300mil.
On April 26, G3 Global entered into a collaboration with Sensetime Group Ltd and China Harbour Engineering Company Ltd to set up Malaysia’s first artificial intelligence (AI) park, with a total investment in excess of Us$1bil over the next five years.
In addition, G3 Global has also inked a collaboration agreement with Sensetime to develop new AI products and solutions as well as secure strategic key industry players to explore this untapped area.
For perspective, Sensetime is the fifth national AI platform in China and is also the country’s largest AI algorithm provider. Incorporated in 2014, the start-up is currently valued at about Us$7.5bil (Rm31.38bil).
A source familiar with G3 Global’s AI park project said that the development would be kicked off soon, with the contracts for the mega-project to be awarded by the end of this year.
“Due the ongoing trade war, many Chinese parties have been scouting for other opportunities outside of China, and they are very interested to be part of this project (AI park), which is expected to have a gross development value of more than Rm300bil,” he said.