Wednesday 17 Apr 2024
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KUALA LUMPUR (March 7): Loss-making Green Packet Bhd said it is selling its wholly-owned Labuan investment banking business Oasis Capital Investment Bank Ltd (OCIB) for RM23 million.

The disposal provides a timely opportunity for the group to unlock and realise the value of the investment and assets in OCIB, said the digital solutions player in a bourse filing.

Green Packet said it is selling its entire equity interest in OCIB to WKJ Capital Equity Sdn Bhd, which is 35%-owned by Tan Wei Sun, and 30% each by Aeriel Huang and Wisen Soon, with the remaining 5% by Wisun Soon.

The group said the RM23 million consideration was agreed on a “willing-buyer willing-seller” basis taking into consideration OCIB’s net assets of RM9.21 million as at Dec 31, 2022, and investment banking licence from the Labuan Financial Services Authority.

OCIB was issued the licence on Jan 3, 2022, to carry out Labuan investment banking business as defined under the Labuan Financial Services and Securities Act 2010.

Green Packet said that based on the unaudited net assets of OCIB of RM9.21 million as at Dec 31, 2022, it is set to make an estimated gain of RM13.79 million on the disposal.

“The proceeds received from the said disposal could be reallocated to mainly fund the group’s existing core businesses particularly fintech and communication businesses and/or any future prospectiveness businesses,” it added.

For the financial period from Sept 7, 2021 to Dec 31, 2022, OCIB logged a loss after taxation of US$290,878 (RM1.3 million) with no revenue.

Green Packet said the disposal is expected to be completed in the second quarter of 2023.

Shares in Green Packet ended unchanged at 5.5 sen on Tuesday (March 7), giving the group a market capitalisation of RM109.32 million.

Edited ByS Kanagaraju
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