Frankly Speaking: Failure to deliver on promises

This article first appeared in The Edge Malaysia Weekly, on July 12, 2021 - July 18, 2021.
Frankly Speaking: Failure to deliver on promises
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Techpreneur and Green Packet Bhd founder Puan Chan Cheong had once pinned high hopes on G3 Global Bhd, expecting the Internet of Things (IoT) solution provider to turn around within a short period of time.

Because of the bright prospects seen in G3 Global, Green Packet emerged as a substantial shareholder of G3 in August 2016.

However, five years later, Green Packet is exiting G3, with plans to sell up to a 24.81% stake in the latter to Puan at 15 sen per share. In March, Green Packet sold a 4.24% stake in G3 for 16.16 sen apiece.

Green Packet even warned that G3’s share price may further trend downwards due to market uncertainty and volatility. Has Green Packet’s investment in G3 proven to be unproductive although a one-off gain of up to RM52.2 million will be realised? If not, why the disposal to Puan?

Formerly known as GA Blue International Bhd and Yen Global, G3 has not been able to turn around after it slipped into the red in 2014.

The timing of the stake disposal is a bit tricky, as Green Packet would have raked in higher gains from G3 if the disposal had taken place late last year, when its share price spiked to over RM3 before the three-for-one bonus issue this year.

For Green Packet, its business ventures have always failed to keep up with the momentum of its shares. After the launch of its KippleLive proptech application, its share price surged to a high of RM1.65 in May 2020, but since then, it has been declining to close at 24 sen last Friday.

Green Packet, which started its venture in solutions, communications and digital services, including financial technology and IoT in 2017, recorded net losses in the past four years.

It remains to be seen if its e-wallet business and payment gateway solutions unit Kiplepay Sdn Bhd can help the company return to the black.

Right now, it is diversifying into investments and money lending in order to grow its revenue stream and reduce reliance on its existing businesses.

Can Green Packet deliver on its promises to create higher value for its shareholders?

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