Green Packet keen on new strategic partners: CEO

  • Business
  • Friday, 09 Jun 2006

KUALA LUMPUR: GREEN PACKET BHD, a wireless technology specialist, expects to take on board strategic investors from the Middle East, said group managing director and chief executive officer Puan Chan Cheong. 

New strategic partners would be given priority in the company’s upcoming new share issue of up to 10% of its capital, he said after the company’s AGM and EGM yesterday. 

“When entering a new market, there is a learning curve, which is why it is important to have a strategic partner,” Puan said, referring to Green Packet’s maiden foray into the Middle East via its memorandum of understanding with Kalaam Telecommunications Bahrain BSC (c). 

The strategic stake would likely be given to large institutional investors who would be able to facilitate Green Packet’s entry into the region, he added. 

Puan said although talks with Kalaam were in the preliminary stage, the company intended to finalise a definitive agreement “within the next three months''. 

Upon entry into Bahrain, the company targeted a subscriber base of 100,000 in two years, which potentially could bring in revenue of more than US$5mil a month, Puan said. 

At yesterday’s EGM, the company obtained shareholders' approval to ratify a conditional joint-venture agreement to set up GMO Global Ltd, which is incorporated in the British Virgin Islands. 

GMO Global, which markets wireless content and applications technologies in China, has already contributed more than RM2mil to Green Packet’s net profit for the year ended Dec 31, 2005. 

Green Packet signed the conditional agreement with MTOUCHE TECHNOLOGY BHD and OSK Ventures International Bhd in December last year. 

On the company’s proposed acquisition of 70% equity interest in alternative voice call service provider Nextel group of companies, Puan said the deal was at the due diligence stage. 

On the company’s outlook this year, he said the company expected to match last year's performance. 

For the first financial quarter ended March 31, Green Packet reported a 58.1% increase in net profit to RM7.9mil on the back of a 55.48% jump in revenue to RM11.4mil compared with the corresponding quarter a year ago. 

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