Green Packet disposes of G3 shares for RM63.2m

by AZALEA AZUAR / graphic by TMR

GREEN Packet Bhd has disposed of their shareholdings in G3 Global Bhd amounting to 41.37 million shares in the open market for RM63.2 million in cash.

The company, however, remains as a substantial shareholder in G3.

The sell-off is seen as an opportunity for Green Packet to monetise a portion of its shareholding in G3, where it remains a substantial shareholder, the company stated in a Bursa filing yesterday.

Green Packet said the disposal will also strengthen the group’s cashflow position as proceeds from the disposal have been earmarked for working capital requirements to be utilised in the current financial year (FY21).

The company made a gain of RM48.58 million from the sale of the G3 shares.

Green Packet on Tuesday announced a net loss of RM20.23 million in its fourth-quarter ended Dec 31, 2020 (4Q20), from a net loss of RM26.09 million a year ago, mainly attributed to lower income from its communication services segment.

Its revenue for the quarter fell 18.8% to RM163.83 million from RM201.73 million compared to 4Q19.

For the full FY20, its net loss widened to RM73.1 million from a net loss of RM45.97 million despite posting higher revenue of RM618.54 million against RM608.18 million in FY19.

The company expects FY21 to remain challenging due to the Covid-19 pandemic, stating it will improve operational efficiency for wholesale voice traffic and wholesale data business to improve earnings for the communication business.

It also plans to expand the geographical reach and competitive supply chain arrangements for long-term evolution products to improve shipment units and connect people globally.

Green Packet will also build strategic partnerships, upsell additional modules and expand to more sites for digital business, and introduce artificial intelligence applications and solutions for workplace safety, electronic know-your-customer and cloud services to the enterprise market.