Malaysia’s Green Packet divests remaining stake in mobile business

Kuala Lumpur, Malaysia at night

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.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.