OSK Ventures sells its 15.9% stake in Green Packet for RM33mil

KUALA LUMPUR: OSK Ventures International Bhd (OSKVI) has sold off its entire 15.92% stake in wireless networking and telecommunication product company Green Packet Bhd for RM32.97mil.

The venture capital firm told Bursa Malaysia that its unit OSK Technology Ventures Sdn Bhd’s disposal of the 109.895 million 20 sen shares, priced at 30 sen each, was done through direct business transaction and was expected to result in a RM1.1mil loss at OSKVI group level.

Explaining the reason for the disposal, the company said that based on the relatively low trading volume and marketability of the sale shares, any disposal of a large quantity of the sale shares in the open market might cause a material and adverse effects to their market price.

“In light of the above, we believe the disposal provides a good opportunity for OSK Technology Ventures to harvest the value of its investments in Green Packet Bhd and to dispose its shareholdings in Green Packet at a premium over its recent market prices amidst low daily trading volume recorded by Green Packet over the preceding few months,” said OSKVI.

It added that the cash proceeds from the disposal would provide the OSKVI group additional flexibility in managing its funding requirements for future growth and reinvestment into other potential high growth business opportunities.

The disposal is not subject to the approval of the company’s shareholders or any governmental authorities. Effected via an off-market direct business, the disposal is deemed to have been completed on Dec 4.

OSKVI incurred loss attributable to shareholders of RM13.7mil for the last financial year ended Dec 31, 2014. For the first nine months of this year, the company posted an unaudited net loss of RM15.29mil against a profit of RM4.39mil in the corresponding period of 2014.

Green Packet registered a net loss of RM28.5mil for the quarter ended Sept 30, 2015, and profit attributable to equity holders of RM25.76mil for the 15 months to Sept 30.

It holds a 31.1% equity interest in wireless broadband provider Packet One Networks (M) Sdn Bhd (P1).

OSKVI shares fell 2 sen to close at 43 sen on Friday. Meanwwhile, Green Packet added 1.5 sen to 29 sen, with 13.315 million shares traded.