Don’t look now, but tech company, Green Packet just got shareholder nod to go into moneylending
Aug 13, 2021
- Four proposals approved to strengthen its core business pillars
- Moneylending business to look at existing market gaps, underserved
Part of Green Packet’s gain on disposal of G3 shares is expected to be used, in part, as seed capital for Kiple Kendall Fund.
Green Packet Bhd announced last Fri, 13 Aug that it had received the approval of shareholders during an extraordinary general meeting for four proposals to strengthen its core business pillars.
Among these proposals was the disposal of G3 Global Bhd’s shares as part of Green Packet’s strategic asset monetisation to facilitate investment in ventures for longer term growth.
The estimated gain on disposal from the G3 shares of approximately between US$4.5 million to US$12.4 million (RM18.9 million to RM52.2 million) is expected to be used, in part, as seed capital for the investment segment’s Kiple Kendall Fund and X Bamboo Fund targeted at both late-stage and startup businesses.
The shareholders also approved proposals for Green Packet’s diversification into Investment and Moneylending business segments as part of the move to expand its revenue streams and earnings base, while reducing dependency on existing businesses.
This is aligned to its plan to improve future earnings as part of its Green Packet 5.0 growth trajectory.
“The moneylending business which supports Green Packet’s strategic expansion into diverse revenue streams, will look at filling the gaps created by longer processing periods and stricter lending requirements imposed by conventional financial institutions and the demand for financing from underserved individuals and businesses, particularly in view of recent economic challenges,” said Puan Chan Cheong (pic), Green Packet’s Group Managing Director.
This business is to be undertaken by Packet Interactive Sdn Bhd, a wholly owned subsidiary that holds a moneylending licence awarded by the Ministry of Housing and Local Government.
Source: Digital News Asia