The Board of Directors of OSKVI (“Board”) wishes to announce that OSKVE, a whollyowned
subsidiary of the Company, had on 28 May 2012 entered into a Conditional Share Purchase Agreement (“CSPA”) with RHBC in relation to the Proposed Disposal.

The Proposed Disposal will involve the disposal of 6,811,111 ordinary shares of RM1.00 each held in Finexasia, representing 59.95% of the total issued and paid-up share capital of Finexasia, to RHBC for a total cash consideration of RM12,500,000

Pursuant to Rule 9.20 of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad, the Company wishes to inform that the aggregate sale consideration of quoted securities by the Company for the preceding 12 months, which has not been announced, has exceeded 5% of OSKVI’s latest audited consolidated net assets, details are as follows:-
 (a) Aggregate sale consideration within the preceding twelve (12) months RM 52.82 million, 30.87% % of OSKVI’s Consolidated Net Assets

 (b) Investments in quoted securities as at 8 May 2012
 Total Cost 168.87 million
Total Book Value 131.37 million
Total Market Value 131.37 million

 (c) Net profit arising from the sale of quoted securities during the current financial year ending 31 December 2012 (Sales proceeds less investment cost and incidental expenses)
 RM 29.85 million

It believe the RM 52,8 million includes disposal of all EBWORX shares  for RM47million plus 25 million shares mTouche @ ~RM0.28.

After being mired in the red for several years as a result of the long gestation period for its broadband business, Green Packet Bhd is optimistic the company is now on the cusp of a turnaround.

The company hit a key milestone when it turned an operating profit (earnings before interest, tax, depreciation and amortisation [Ebitda]) in December last year. Although it remained in the red for 4Q11 with a net loss of RM29.9 million, and the whole of 2011 with losses totalling RM88.5 million, Green Packet believes that a return to profitability is within reach. The solutions business, including the sale of software licences and customer premises equipment, is already profitable but the broadband unit, P1, is still loss-making.

The broadband unit is, however, expected to turn Ebitda positive by mid-2012, helped in part by a change in accounting policy in which modem costs will now be classified as amortisation expenses instead of operating costs. But more importantly, Green Packet expects the underlying business to improve further.

P1 expected to turn positive Ebitda in 2012
Some 114,000 new subscribers were acquired last year, bringing the total subscriber base to 388,000 at end-2011. This is somewhat off the original forecast pace but revenue still grew 41% to RM293 million.

Bolstered by the addition of 356 new sites rolled out in 4Q11, the company is upbeat that subscriber acquisition will gain traction in the current year. It ended 2011 with a total of 1,527 sites and about 50% nationwide coverage.
P1 targets total subscribers to reach 550,000 by end-2012. This includes signing up existing customers for new services such as fixed voice, whereby a telephone will be connected to the home modem for voice over Internet protocol (VOIP) calls.

The One Plan, launched in 4Q11, which offers both home and portable modem (dongle) with a shared quota has been quite successful — and has given average revenue per user (ARPU) a boost. ARPU improved to RM81 in the last quarter of 2011, from the average of RM73 to RM75 in the three preceding quarters.

The company recently expanded its One Plan to include the option of high-speed broadband services, piggybacking on Telekom Malaysia Bhd’s fibre network. In addition to up-selling its existing high usage customers, P1 intends to sign up primarily higher value SME customers with its combination of high-speed broadband (HSBB) plus on-the-go broadband package.

An additional capital expenditure (capex) of about RM280 million is budgeted for the current year to expand its coverage to 60% with some 2,300 sites. The company plans to raise network capacity and coverage further, to about 65% to 70% with 3,000 sites by 2013/14. Capex is estimated at roughly RM200 to RM250 million per year.

The wider coverage will dovetail with the launch of long-term evolution (LTE) services in the country, which will enable P1 to compete with mobile operators in offering telephony and mobile Internet services. By this time, it is anticipated that a healthy ecosystem of LTE-enabled devices will be in the market. P1 is among the handful of operators awarded 4G spectrum blocks.

If all goes to plan, Green Packet expects to turn a small net profit in 2013. If so, we should see evidence of the turnaround through the current year, which would certainly give sagging investor confidence a strong shot in the arm.

P1 listing will crystallise value for Green Packet shareholders
The anticipated listing of U Mobile Communications later this year could also stir interest in Green Packet.

Recall that Singapore Technologies Telemedia acquired a 33% stake in U Mobile for about RM625 million in 2010, implying a total value of about RM1.9 billion for the mobile operator. Recent news reports on its IPO speculate a price tag of up to RM4 billion to RM5 billion. The operator is reported to have over a million subscribers, more than 1,000 base stations and recently inked an agreement to share Maxis’ radio access network.

Indeed, there has been speculation that P1 could be seeking a separate listing on Bursa Malaysia, perhaps sometime in 2013. A listing would enable the company to tap the capital market directly, to fund future capex, and crystallise value for existing Green Packet shareholders.

Green Packet sold a 26% stake in P1 to Korean telco SK Telecom for roughly RM374 million in two tranches in 2010 and 2011. The sale of the strategic stake values P1 at some RM1.44 billion. SK Telecom is actively involved in the company’s operations. An IPO would likely carry a higher valuation, with the broadband operator expected to hit, or be close to reaching, positive earnings before interest and tax (Ebit) by mid-2013.

Assuming a fairly modest RM2 billion valuation for P1, Green Packet’s 57.5% stake would be worth some RM1.15 billion, compared with the company’s current market capitalisation of less than RM382 million at the current share price of 58 sen. Green Packet had net debt totalling RM115 million as at end-2011.


Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.


This article appeared in The Edge Financial Daily, April 18, 2012.

On 2 March 2012, the Board of Directors of eBworx, an investee company of OSKVI, had announced that it had received a letter dated 1 March 2012 from Hitachi, Ltd. ("Hitachi" or "Offeror") on its potential intention or potential proposal to acquire all the outstanding ordinary shares of RM0.10 each in eBworx ("Share(s)") subject to conditions including completion of due diligence to the satisfaction of Hitachi, no material adverse change in eBworx, the retention of certain key personnel and receipt of all internal approvals required by Hitachi to undertake the potential proposal .

On 5 April 2012, Maybank Investment Bank Berhad, had on behalf of the Offeror, served a notice on the Board of Directors of eBworx informing them of the Offeror's intention to undertake a conditional take-over offer to acquire all the Shares (excluding treasury shares) not already owned by the Offeror ("Offer Shares") for a cash offer price of RM0.90 per Offer Share ("Offer").

 Accordingly, pursuant to the Offer, OSKCP, a wholly-owned subsidiary of the Company, has provided an irrevocable and unconditional undertaking to accept the Offer and dispose of 51,896,000 Shares, representing its entire 25.36% equity interest in eBworx, for a total cash consideration of RM46,706,400 ("Sale Consideration"). However, the Offer is conditional upon the Offer having been validly accepted by the shareholders of eBworx of not less than 85% of the voting shares of eBworx

OSKVI has sold 5 million and 20 million shares of mTouche on 20-Feb and 23-Feb respectively. They did not report out the transaction price. With disposal of the 25 million shares, OSKVI still have 48 million shares of mTouche. We should know the transaction price on the coming quarter earning report.

Saturday March 24, 2012

DATUK Kamarudin Meranun , co-founder of AirAsia Bhd and big corporate name created some stir this week when he doubled his stake to 11.53% in smallish mTouche Technology Bhd . At the same time, mTouche chief financial officer Tan Wee Meng , the third largest shareholder and co-founder of the mobile content provider, reduced his stake from 15.55% to 8.64%.

大马超级富豪NO.34：200万滚出20亿资产 黄宗华展现福州人拼劲

With the news on eBworx gets takeover offer from Hitachi, it is not surprise if OSKVI to divest all its shares of the EBWORX, MTOUCHE & GPacket and return the money to shareholders. How much of OSKVI worth? It should worth more than RM1.

 Ebworx Bhd has received a letter from Hitachi Ltd which has expressed intention to acquire all of the outstanding ordinary shares of the company.  The potential buyer is proposing to acquire the shares by making a conditional voluntary general offer to all shareholders with a minimum level of acceptance of no less than 85 per cent of the nominal value of the shares, excluding treasury shares, held by the company.

In a filing to Bursa Malaysia today, Ebworbx said the letter stated an indicative purchase offer price of RM0.90 per share.

OSKVI is holding ~25% share of EBWORX. For more information, please see Why OSKVI is undervalued?
The news will indirectly boost the OSKVI counter.

Green Packet, eBworx and mTouche are the 3 major investment of OSKVI.

Written by Chua Sue-Ann       Monday, 27 February 2012 10:44


KUALA LUMPUR: As the Malaysian financial services sector grows its regional and digital footprints, banking software solutions provider eBworx Bhd has been pursuing growth by riding the sector’s new dynamics.

eBworx CEO Tan Suan Fong said the ACE Market-listed firm’s strategy is to grow alongside Tier-1 banks, particularly those that have gone on a regional expansion path.

Its client base includes almost all the local banks as well as those in Singapore, Indonesia, China, Thailand and the Philippines.

As banks set up branches across the Asean region, eBworx hopes to play a role as their technology partner in implementing integrated software systems across their operating markets. There are two dynamics at work; a regulatory factor and a technological shift factor.

“The banking business is changing so fast. After implementing a system, banks need to enhance the system to keep pace with the changes in business,” Tan told reporters at a media luncheon last Friday.

He pointed out that when a financial service provider expands to a different country, it invariably faces limitations on the number of branches it can open.
“The Internet and mobile channels complement their shortcoming in terms of physical presence. We also see banks investing more and more in these channels as Internet and mobile banking become more important due to the technology shift towards the post-personal computer era,” Tan said.

in addition, the software requirements of financial service providers change as and when central banks tweak regulatory guidelines, Tan said.

He said the impending implementation of the Basel III global regulatory standards will also require banks to re-evaluate their internal frameworks, for example in the areas of credit processing and compliance, which will also drive eBworx’s credit management software business segment.

Although the Basel III guidelines have yet to be ironed out, Tan expects the software work to come in from 2013 onwards.

Although eBworx has contributed towards the group’s origins in providing electronic banking software from 1998, it has since diversified its product offerings.

From its earlier bread and butter business of software licensing and implementation, eBworx has in the past few years grown its recurring income stream by providing maintenance and systems enhancement.

Recurring income now makes up about 70% of eBworx’s top line after the group reoriented its business strategy away from one-off software licensing sales.

The bulk of eBworx products and services are now in Internet banking and mobile banking solutions, credit management processing software, helping banks analyse a loan applicant’s credit worthiness and financial services software.

The change in focus came after eBworx’s financial results took a hit in FY08 ended Dec 31.

During the period, the global financial crisis pushed many of its customers to implement cost-cutting measures.

As a consequence, eBworx’s net profit plunged 64.71% to RM2.77 million in FY08 from RM7.86 million a year earlier on a drop in revenue of 18.9% to RM31.23 million from RM38.51 million. eBworx’s earnings have since recovered.

According to unaudited results for FY11, eBworx’s net profit almost tripled to RM11.84 million from RM4.76 million previously. Revenue grew 57.39% to RM51.81 million from RM32.92 million.

For FY11, over half of eBworx’s revenue came from its Malaysian operations while almost 30% was contributed via its Singapore jobs.

Tan said the ideal situation is to have 70% of its top line from operations abroad with the rest from home base.

According to Tan, eBworx is targeting to secure RM70 million to RM90 million worth of jobs this year, adding to its ongoing order book of RM60 million.

eBworx’s share price has been climbing to hit a four-year high of 78 sen on Jan 28, but has since slipped to close last Friday unchanged at 73 sen.

The share’s performance was perhaps boosted by earnings growth and mounting expectation of a dividend payout with the company’s growing cash and bank balance of RM35.2 million.

However, Tan remained mum on eBworx’s potential dividend, saying that the board has yet to make a decision.

Liquidity is a concern given that eBworx’s three largest shareholders collectively control about 70.69% of the company.

Tan is the third largest shareholder with a 16.12% stake after CSE-Infotech Ltd and OSK Ventures International Bhd’s unit OSK Capital Partners Sdn Bhd, which own 29.21% and 25.36% equity interest respectively.

eBworx (market capitalisation RM149.41 million) is currently trading at a price-earnings ratio (PER) of 12.9 times.

Its PER is in the mid-range compared with its closest peers, South Korea-listed S1 Corp Ltd (market capitalisation about RM564.51 miliion) which is trading at a PER of 15.5 times and India-listed Nucleus Software Exports Ltd (market capitalisation about RM754,476) trading at a PER of 7.3 times.

According to Tan, its direct competitors are mostly from the US, Europe and India although companies in India operate on a low-cost software engineering model.

But building on eBworx’s regional experience, Tan said the future focus will be on growing its presence in Singapore, Indonesia and China.

“For the past five years, more than 80% of our revenue comes from existing customers. So we don’t really believe in recruiting a lot of new customers, we want to strike a balance,” Tan said.


This article appeared in The Edge Financial Daily, February 27, 2012.