Malaysia’s listed telecom and tech firm Green Packet Bhd said it has divested its remaining interest in the mobile business to Telekom Malaysia in a sale that now allows the company to focus on its new businesses and also become debt-free.
The agreement entails surrendering all the shares and convertible medium-term notes (CMTN) related to WeBe Digital.
“With the exit from WeBe, we are now fully focused on the new businesses that include fintech, proptech, and cloud computing business as well as building our foray to become a regional digital bank,” Green Packet said in a post on Linkedin.
Green Packet has entered into a supplement agreement with Mobikom, a unit of Telekom Malaysia Bhd (TM), to divest its remaining stake in the asset.
In a regulatory filing with Bursa Malaysia on Friday, Green Packet said the proposal allowed the company and Mobikom to “shorten, simplify and reduce” the procedures and incidental costs to be incurred for the exchange process by removing the need to undertake the “Fair Valuation Exercise”.
According to the filing, Green Packet will “recognise a fair value gain of approximately RM63.1 million” from the deal. It is also expected to result in gross annual interest savings of approximately RM14.9 million per annum for the company, it added.
In 2014, Green Packet had sold a partial 57 per cent stake in WeBe, formerly known as Packet One Networks (M) Sdn Bhd, to TM in a deal that valued WeBe at RM350 million.
TM had also extended a further RM186.7 million to Green Packet via the issuance of redeemable exchangeable bonds, according to local media The Star.
Upon completion of the scheduled exchange, TM (via Mobikom) and SK Telecom Co Ltd will hold 91.8 per cent and 8.2 per cent in Webe’s respectively, TM said in a separate filing on Friday.
Green Packet announced in June that it has entered a term sheet with Singapore-based software technology startup Xendity to acquire the entire paid-up share capital of the company.
Xendity aims to accelerate and strengthen identity verification processes by using electronic-know your customer (e-KYC) technology. Xendity’s products include ID-scanner, document-scanner, face recognition and anti-money laundering and counter financing of terrorism screening solutions, its website showed.
Green Packet has earlier said it is assessing suitors and getting ready to bid for a digital bank license in Malaysia.