KUALA LUMPUR, Malaysia (July 5): Green Packet Bhd has proposed selling its share in G3 Global Bhd to Puan Chan Cheong (CC Puan), its managing director and CEO, for between RM61.26 million and RM91.89 million in cash. Green Packet said in a bourse filing that it wants to sell up to 612.57 million shares, or a 24.81 percent ownership in G3 Global, to CC Puan for between 10 and 15 sen per share (after executing warrants into shares).
The company said it owned 307.32 million shares in G3 Global, or 14.2 percent of the company, as of July 2. It also had 305.25 million outstanding G3 Global warrants with a three-sen exercise price.
Green Packet would raise RM91.89 million at the maximum disposal price of 15 sen per share. Kiple Kendall Fund will receive RM55.3 million in startup capital, while X Bamboo Fund will receive RM6.15 million in seed capital.
Another RM10 million would be used for Labuan Investment Bank’s issued capital, and another RM10.3 million for the redemption of the share financing facility.
The group has also put aside RM9.16 million for the exercise of G3 Global warrants, with the remaining RM3.58 million going toward proposal expenditures.
“The realization of the economic advantages of the investments is intended to produce value for the company and its shareholders. The financial benefits from the usage of these proceeds are expected to boost the company’s earning power “It was stated.
Depending on the selling price of G3 Global shares, Green Packet anticipates to realize a one-time disposal gain of between 18.97 million and RM52.20 million.
Green Packet, in a related move, has proposed diversifying its business to include investments and money lending in order to increase revenue and lessen reliance on its existing companies.
Each of the two varied businesses is expected to contribute 25% or more of Green Packet Group’s future net profits, according to the company.
Green Packet’s stock price fell 0.5 sen today, or 1.92 percent, to 25.5 sen, for a market capitalization of RM321 million. A total of 3.62 million shares were exchanged.
G3 Global ended the day at 15 sen, up 0.5 sen or 3.45 percent, for a market capitalization of RM325 million. A total of 2.3 million shares were exchanged./n
