Green Packet to dispose of entire stake in Xendity for RM17.5mil

KUALA LUMPUR: Green Packet Bhd (GPacket) has proposed to dispose of its entire stake in Xendity Sdn Bhd (Xendity) to Innov8tif Holdings Sdn Bhd for RM17.5mil.

GPacket, in a Bursa filing, said its wholly owned subsidiary, Xendity Pte Ltd entered into a shares sale agreement with Innov8tif for the disposal.

The aggregate original cost of investment of GPacket’s 100% equity stake in Xendity Pte Ltd was RM28.38mil on Feb 2, 2021.

The disposal is expected to result in an estimated gain of about RM3.6mil.

“The disposal of the target sale shares is viewed positively to provide a timely opportunity for the company to immediately unlock and realise the value of the investment and assets in Xendity,” GPacket said.

“The proceeds received from the said disposal could be reallocated to mainly fund the group’s existing core businesses, particularly fintech and communication businesses and/or any future prospective businesses. These shall improve the cash flow position of the group and reduce the group’s dependence on bank borrowings,” it added.

GPacket said the proceeds received from the disposal would be mainly used for working capital purposes.

“The board of directors believes that the prospects of the company remain positive, and the disposal shall improve cash flow position and reduce bank borrowings as the proceeds can be utilised as working capital to fund the existing core businesses,” it said.