KUALA LUMPUR: Green Packet Bhd has boosted its stake in jeanswear maker G3 Global Bhd (formerly Yen Global Bhd) to 32%, just below the 33% threshold for triggering a mandatory offer.

It told Bursa Malaysia that it had acquired, for RM12.38mil, a further 82.5 million rights shares in G3 Global, which last year expanded into selling telecommunication solutions and services.

Green Packet, a mobile broadband and networking solutions provider, already had a 22% interest in G3 Global, acquired about a year ago at 60 sen per share or a total of RM18.15mil.

The latest acquisition was done through two blocks - 41.25 million provisional allotment rights (PAL) under the rights issue of G3 Global for RM4.125mil on Sept 8 via direct business transaction, followed by the subscription to an additional entitlement of 41.25 million shares for RM8.25mil or 20 sen each on Monday (Sept 25).

The total purchase, funded by internally generated funds, made Green Packet the single biggest shareholder of G3 Global.

Prior to this, Taiwanese global provider of wireless broadband solutions and Internet of Things (IoT) player, Gemtek Technology Co Ltd, was the biggest investor in G3 with a 30% stake. 

“The acquisition is in line with the company’s direction to make further strategic investment to strengthen the group’s ICT (information and communications technology) equipment business,” said Green Packet.

G3 has undertaken a renounceable rights issue of up to 275 million new shares on the basis of two rights shares for every one existing share held, together with up to 206.25 million free detachable warrants on the basis of three warrants for every four rights shares subscribed.

Gemtek’s entry into G3 last year sealed the latter’s position in the telecommunications and, specifically, IoT space.

In January 2016, G3 said it was moving into the telecommunications space with the acquisition of VLT Wholesale Sdn Bhd, which has been renamed Atilze.

Subsequently, in April, Atilze inked a partnership with Gemtek Technology Co Ltd to market the latter’s telecommunication products in the area of broadband, LTE and IoT.

Gemtek, a global maker of connectivity devices, contract manufactures nearly 30% of Green Packet’s branded products.