4 November 2009, Petaling Jaya: GREEN PACKET BERHAD (“GPB”) is looking to undertake a private placement of up to 84,800,157 new ordinary shares of RM0.20 each in GPB. The Board of Directors of GPB (“The Board”) and OSK Investment Bank Berhad (“OSK”) announced this to Bursa Malaysia Securities Berhad ("Bursa Securities") today.
According to CC Puan, Group Managing Director/CEO of GPB, this exercise is to enable the Company to raise additional funds expeditiously and to strengthen its balance sheet position without incurring interest costs as opposed to bank borrowings. In addition, the private placement may broaden the institutional investor base of the Company.
Puan added, “The additional funds will enable us to take full advantage of local and international opportunities presented to us. In line with our business strategy, we require working capital for capital expenditure and operating expenses including the deployment of WiMAX infrastructure in Malaysia and other overseas markets.”
GPB’s Packet One Networks (Malaysia) Sdn Bhd or P1 is the only nationwide 4G WiMAX Operator, having recently got the green light from Malaysian Communications and Multimedia Commissions to extend commercial services deployment to East Malaysia. Via its newly set up, Packet One (S) Pte Ltd, GPB also secured a WiMAX license in Singapore.
The Proposed Private Placement would involve the issuance of up to 10% of the issued and paid-up share capital of GPB representing up to 81,643,930 of the GPB Shares. The issue price for the Placement Shares will be determined and fixed by the Board once approval has been sought from the relevant authorities. This includes approval on the proposed allotment and placement arrangement from Bursa Securities and from the current shareholders via an EGM, which date had not been set.
Green Packet Holdings Limited (“GPHL”) and OSK Technology Ventures Sdn Bhd (“OSKTV”), both major shareholders of GPB have indicated their intention to participate in the Proposed Private Placement. The Placement Shares are also proposed to be placed out to independent third-party investors to be identified later.
Puan who is also a substantial shareholder of GPHL said, “This Proposed Private Placement will enable GPB’s major shareholders to continue supporting the 4G WiMAX Operator business to further its positive prospects in Malaysia and to become a multi-market pan-regional leader.”
The fund raising exercise is expected to contribute positively to the future earnings of the Group and assuming that the Proposed Private Placement will be completed in this financial year ending 31 December should result in an increase in the Company's total issued and paid-up share capital.
It is not expected to have any material effect on the dividend policy of the Company this year.
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