KUALA LUMPUR: Wireless technology specialist, Green Packet Bhd, has achieved a new milestone in the Mesdaq Market by selling 10% of its shares to Jeddah-based Saudi Economic and Development Co (SEDCO) for about RM91mil.
The sale of 36.7 million new shares at RM2.47 each represents the largest private placement investment by a single party on Mesdaq.
Green Packet chief executive officer Puan Chan Cheong said the firm would set up a 50:50 joint venture company with SEDCO to market and distribute wireless networking and telecommunications products and solutions in the Middle East and beyond.
“The joint-venture company will also be a component for Green Packet to secure recurring revenue by operating networks for wireless broadband services. The tie-up with SEDCO is our means of executing this plan in the Middle East and related markets there,” he said yesterday after the signing of the agreement with SEDCO. The event was witnessed by Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik.
SEDCO managing director Yousuf Khayat said Green Packet's excellent financial record, ground-breaking products that had proved their worth in the wireless broadband sector, and scalability of its business model were impressive.
“SEDCO prides itself as the leading private wealth management and investment organisation in Saudi Arabia and the Middle East. We are long-term investors who look for opportunities to invest in promising Asian companies and helping the businesses penetrate the Middle East markets,” he said.
Puan said the joint-venture company would have a paid-up capital of RM18mil.
He said it would market present and future Green Packet solutions like SONaccess, SONbuddy, and SONmetro.
Puan said there was vast potential for ICT applications in Saudi Arabia and the Middle East. “People in the Middle East are paying between RM430 and RM550 a month for only 256 kilobytes per second of broadband connectivity,” he said, adding that Malaysians paid only RM40 for identical connection.
He said Saudi Arabia would be spending about 25% of its funds on expanding the country's telecoms infrastructure development in the next decade.