Green Packet buys 22% stake in Yen Global


KUALA LUMPUR: Mobile broadband and networking solutions provider Green Packet Bhd has bought a 22% stake in loss-making Yen Global Bhd for RM18.15mil.

Green Packet said on Wednesday it had acquired the stake comprising 30.25 million shares, confirming a StarBiz report of its venture into the Internet of Things (IoT) through this purchase.

Stock market data showed the shares were transacted in an off-market at at 60 each, which was 26 sen below Tuesday's closing price of 86 sen.

“The purchase price of 60 sen was arrived at on a ‘willing buyer willing seller’ basis after taking into consideration of Yen Global's new business venture in ICT business,” said Green Packet. 
 
StarBiz reported Green Packet would take up a substantial stake of about 20% in Yen Global, which is involved in the sale of wireless broadband products and the IoT business.

IoT has been hailed as the next big digital revolution, connecting millions of everyday objects using inexpensive microsensors so that things like thermostats, cars, door locks and even pet trackers have network connectivity. 

Yen Global is seeing a rejuvenation as its apparel production business takes a step back to its IoT operations. 

Recall, Taiwanese global provider of wireless broadband solutions and IoT player, Gemtek Technology Co Ltd, had raised its stake in the company to 30% last month.

Green Packet explained the acquisition was in line with the company’s direction to make further strategic investment to strengthen the group’s information and communication technology (ICT) equipment business. 

It added that its unit Atilze Digital Sdn Bhd had signed a distributorship agreement with Gemtek Technology Co. Ltd to be its distributor to promote, market and sell the products such as LTE, broadband, IoT and other telecommunication products in the South-East Asia. 

“Green Packlet has identified IoT as one of its immediate growth areas. The acquisition enables the company to have an exposure into the IoT business without the need for a direct involvement and spending in research, development, sales and marketing,” it said. 

http://www.thestar.com.my/business/business-news/2016/08/03/green-packet-and-yen-global-tie-up/

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