Green Packet disposes investment banking business for RM23m

GREEN Packet Bhd has entered into a share sale agreement (SSA) to dispose of a 100% stake in Oasis Capital Investment Bank Ltd (OCIB) to WKJ Capital Equity Sdn Bhd for RM23 million cash.

Green Packet told Bursa Malaysia in a filing yesterday that the disposal provides a timely opportunity for the company to immediately unlock and realise the value of the investment and assets in OCIB which is involved in the investment banking business in Labuan.

“The proceeds received from the disposal will be mainly used for working capital purposes for the group’s existing core businesses, particularly fintech and communication businesses and to fund for any future business expansions and/or any future prospective business, project and/or acquisitions,” it said.

Its board of directors believes that the prospects of the company remain positive and the disposal shall improve cashflow position and reduce bank borrowings as the proceeds can be utilised as working capital to fund the existing core businesses.

Green Packet expects the disposal to be completed in the second quarter this year and is not subject to the approval of its shareholders but subject to the approval from the Labuan Financial Services Authority (FSA). — TMR