KUALA LUMPUR (Jan 24): Green Packet Bhd said it is disposing of its 15% stake in CSH Solutions Sdn Bhd for RM3.5 million to Lai Kwok Ching, as part of its portfolio consolidation exercise.

Green Packet bought the stake in October 2022 for RM8 million. The audited net assets of CSH Solutions stood at RM2.56 million at end-June 2023, which will result in a gain of RM944,900 following the disposal announced on Wednesday.

The remaining 85% in CSH Solutions is held by Velocity Capital Partner Bhd, formerly CSH Alliance Bhd.

“The board of directors believes that the prospects of the company remain positive,” Green Packet said in its filing announcing the sale.

“The disposal of CSH Solutions sale shares shall improve cash flow position and reduce borrowings as the proceeds can be utilised as working capital,” it added.

Green Packet, which has been making full-year losses since 2017, has announced several acquisitions and disposals in recent years.

The group had planned to dispose of its Labuan-based investment banking business Oasis Capital Investment Bank Ltd for RM23 million to WKJ Capital Equity Sdn Bhd last year, but called it off after failing to get regulatory approval within the stipulated timeline.

In December, it resorted to disposing of the investment bank to Velocity Capital Sdn Bhd (also a wholly owned unit of Velocity Capital Partner) for RM11 million cash, less than half the original price tag.

At end-September, Green Packet had borrowings of RM9.56 million, against cash of RM13.45 million. It has negative equity reserves of RM297.88 million.

Shares of Green Packet closed unchanged at 4.5 sen, giving it a market capitalisation of RM81.11 million.