PETALING JAYA: Green Packet Bhd, which received shareholder approval for the sale of its G3 Global Bhd’s (G3) shares, will be making a gain on disposal of RM18.9mil to RM52.2mil from the deal, the company said.

       In the first quarter of 2021, the monetisation of G3 shares resulted in gain on disposal of RM57.5mil, which enabled Green Packet to continue investing in new digital services for stronger growth in the future and unlocking shareholder value.

       This further strengthened its financial position to a positive earnings before interest, tax, depreciation and amortisation of RM21.5mil and a profit after tax of RM18.8mil in the same quarter.

       In early July, Green Packet said it proposed to sell its entire stake in G3 to Puan Chan Cheong or CC Puan, the group’s managing director and chief executive officer, for RM91.89mil.

       At yesterday’s EGM of Green Packet, shareholders approved four proposals to strengthen the group’s core business pillars. This included the plans to dispose of the G3 shares, “as part of the group’s strategic asset monetisation to facilitate investment in ventures for longer-term growth,” its said.

       “The estimated gain on disposal from the G3 share disposal of approximately RM18.9mil to RM52.2mil is expected to be used, in part, as seed capital for the investment segment’s Kiple Kendall Fund and X Bamboo Fund, targeted at both late-stage and startup businesses,” Green Packet said.

       It added that shareholders also approved proposals for the group’s diversification into investment and money lending as part of its move to expand revenue streams and earnings base, while reducing dependency on existing businesses.

       “This is aligned with our plan to improve future earnings as part of the Green Packet 5.0 growth trajectory.

       “The money lending business, which supports the group’s strategic expansion into diverse revenue streams, will look at filling the gaps created by longer processing periods and stricter lending requirements imposed by conventional financial institutions and the demand for financing from underserved individuals and businesses, particularly in view of recent economic challenges,” said Puan.

       This business is to be undertaken by Packet Interactive Sdn Bhd, the group’s wholly owned subsidiary that holds a money lending licence awarded by the Housing and Local Government Ministry, and the group’s Islamic Digital Bank, subject to successful licence issuance.