PETALING JAYA: Green Packet Bhd has proposed to subscribe for the redeemable convertible exchangeable preference shares (RCEPS) in Mirai Alpha Sdn Bhd for RM12.15mil in a bid to enhance its income stream and grow its Hyperscale Data Centre (HDC) business.
In a filing with Bursa Malaysia yesterday, Green Packet said its wholly-owned subsidiary Next Telecommunications Sdn Bhd has signed an agreement with Mirai HDC and Mirai Alpha, to subscribe for 2,000 ordinary shares in Mirai HDC or 20% stake for RM2,000, and an agreement for RCEPS in Mirai Alpha for RM12.15mil.
“The group’s decision to invest in Mirai Alpha is aligned with the implementation of its 5.0 growth strategy.
“The group has identified the proposals with a view that it will contribute positively to the group’s income stream.
“The proposals will enable the group to grow its HDC business further due to the increasing data centre demand which is in line with the call for greater digitalisation globally, as most industries are expected to migrate their data into the public cloud to improve efficiency moving forward, ” said Green Packet.
It pointed out that the global data centre is expected to grow 10% to 15% over the next five years, spurred by investments made globally by the top data centre players.
In Asia-Pacific, the data centre market is expected to grow at a compound annual growth rate of 12% from 2019 to 2025 despite the Covid-19 pandemic.
Green Packet said the proposed deal was a related-party transaction as its group managing director/chief executive officer and major shareholder Puan Chan Cheong is also a substantial shareholder in Mirai HDC and Mirai Alpha.
It said Mirai Alpha was involved in real estate activities covering construction, development and maintenance of buildings.
The company plans to develop the HDC hub.
Mirai HDC was involved in real estate and investment activities covering buying, selling, renting and operating self-owned or leased real estate.
“The company intends to venture into the business of HDC and be an owner of the HDC building which will be purchased by Mirai HDC from Mirai Alpha, ” said Green Packet.
The proposals would be by way of cash via an advance from Green Packet.