Green Packet (GPACKET) Managing Director and Chief Executive Officer Puan Chan Cheong said that the company will consider selling the subsidiary- Packet One Networks (P1) only if selling price higher than USD $450 million (nearly RM 1.5 billion).
Puan told Nan Yang Siang Pau during the telephone interview, it will announce in two weeks time if company successfully reach a sale agreement of P1 with any interested party.
Based on Green Packet having 55% shares of P1 and OSKVI having 17.63% mother shares (total 685.7 mil shares) and 11.89% warrant shares (total 197.6 mil shares) of Green Packet.
If Green Packet sold the P1 at RM 1.5 billion, then Green Packet will get RM825 mil for selling its 55% shares of P1. The GPAVKET shares held by OSKVI is worth more than RM100 million.
Scenario A
No conversion of GPACKET warrants to mother shares. If all proceeds from sale of P1 return back to GPACKET shareholders, then the 17.63% GPACKET held by OSKVI is worth about RM 145 million
Scenario B
Assuming if P1 warrants are fully convert to mother shares, OSKVI need to pay RM 22 million for its 11.89% of warrant shares conversion. This happen if GPACKET mother share price is higher than the warrant conversion price RM0.945.
After conversion, OSKVI is holding 16.37% of enlarged 883.3 million shares of GPACKET. If all proceed from sale of P1 return back to GPACKET shareholder, then the 16.73%of enlarged GPACKET held by OSKVI is worth about RM 135 million.
Above is just a simple calculation for illustration purpose. Even if P1 being sold it does not mean that GPACKET will return the money to its shareholder.
Both GPACKET and OSKVI warrants will be expired within 2 years time. I believe both companies looking a way to unlock the value of P1 assets.
Puan told Nan Yang Siang Pau during the telephone interview, it will announce in two weeks time if company successfully reach a sale agreement of P1 with any interested party.
Based on Green Packet having 55% shares of P1 and OSKVI having 17.63% mother shares (total 685.7 mil shares) and 11.89% warrant shares (total 197.6 mil shares) of Green Packet.
If Green Packet sold the P1 at RM 1.5 billion, then Green Packet will get RM825 mil for selling its 55% shares of P1. The GPAVKET shares held by OSKVI is worth more than RM100 million.
Scenario A
No conversion of GPACKET warrants to mother shares. If all proceeds from sale of P1 return back to GPACKET shareholders, then the 17.63% GPACKET held by OSKVI is worth about RM 145 million
Scenario B
Assuming if P1 warrants are fully convert to mother shares, OSKVI need to pay RM 22 million for its 11.89% of warrant shares conversion. This happen if GPACKET mother share price is higher than the warrant conversion price RM0.945.
After conversion, OSKVI is holding 16.37% of enlarged 883.3 million shares of GPACKET. If all proceed from sale of P1 return back to GPACKET shareholder, then the 16.73%of enlarged GPACKET held by OSKVI is worth about RM 135 million.
Above is just a simple calculation for illustration purpose. Even if P1 being sold it does not mean that GPACKET will return the money to its shareholder.
Both GPACKET and OSKVI warrants will be expired within 2 years time. I believe both companies looking a way to unlock the value of P1 assets.
