Green Packet mulling sale of assets

22 May 2013

Malaysia’s Green Packet is said to be considering the sale of some its assets with a view to improving its financial situation, the Star Online reports. It is claimed that even its local wireless broadband subsidiary Packet One (P1) could be divested, though the company has not revealed definitive plans regarding the assets it might sell. With the company made up of two main units – P1 and the group’s international business arm, Greenpacket Solutions, which provides broadband connectivity device and solutions to service providers globally – Green Packet group managing director C.C. Puan noted: ‘I can’t comment on whether we are in talks to sell P1 or Greenpacket specifically, but what I can say is that we want to optimise our opportunities to generate cash to improve our financial situation.’ The report, however, cites sources familiar with the company as claiming that discussions for the possible sale of P1 were ongoing, with any deal thought to be worth at least MYR2 billion (USD662 million) if completed.

The development comes in the wake of Green Packet reporting its financial results for the three months ended 31 March 2013, with the company generating a total turnover of MYR149.3 million, up 17% year-on-year. Of that total, P1 contributed revenues totalling MYR81.2 million. Quarterly group EBITDA in the first three months of 2013 was MYR7.4 million, while P1’s EBITDA for 1Q13 surged by 143% y-o-y to MYR8.1 million, with the growth attributed to better cost management. In terms of subscribers, having added 24,100 new customers to its books in the first quarter of 2013, at end-March P1 reported a total of 541,200 WiMAX accesses.

Commenting on the results, Mr Puan said: ‘We are satisfied with [the first quarter] performance. It is reflective of our focus on the bottom line, which our group-wide business transformation programme will pursue with clear goals throughout this year.’

Malaysia, webe (formerly Packet One Malaysia)