KUALA LUMPUR (July 3): Green Packet Bhd is partnering Hong Kong-based Funsea Entertainment Co Ltd to undertake the business related to offering digital contents such as games, movies and music to telecommunications operators or master content providers in Asean.

Green Packet group chief executive officer and executive director Tan Kay Yen said the joint venture (JV) is a strategic decision by the group to deepen its involvement in content creation and distribution, particularly in Southeast Asian.

In a filing with Bursa Malaysia today, Green Packet said its wholly-owned subsidiary in Singapore, NGT Networks Pte Ltd, has entered into a JV agreement and shareholders agreement with Funsea for the purpose.

The total project cost for the business in Malaysia of RM3 million will be funded via shareholders’ advance, proportionately. NGT will fund its investment sum of RM1.2 million via internal funds, while the remaining RM1.8 million will be funded by Funsea.

Funsea is a subsidiary of Beijing TalentWalker Interactive Entertainment Co Ltd (BT), a leading smartphone game developer and publisher established in 2009 with over 70 partners in the gaming industry and has so far developed and published more than 100 social and smartphone games on various platforms worldwide. BT is an affiliate of Shenzhen-listed Zhejiang Dilong Cultural Development Co Ltd.

In a separate statement, Green Packet said the tie-up will be through a JV company in Malaysia called Packet Interactive Entertainment (M) Sdn Bhd (PIESB), with NGT and Funsea taking a 40% and 60% stake respectively.

Under the JV, NGT will be involved in providing local sales, partner and administration support, while Funsea will inject its industry knowledge, expertise and platform which includes strategic business development support by leveraging on its intellectual technology and system. Funsea will also provide its own content and negotiate with its best effort for third party content for the JV company.

“One of the biggest beneficiaries of the growing digital economy in Southeast Asia is the mobile gaming industry which has flourished in the past decade and will continue to grow even further. We cannot ignore the growth of content services across the Southeast Asian region, especially with the exponential growth in mobile and internet penetration numbers,” Tan said.

At 3.45pm, Green Packet shares were unchanged at 35.5 sen, with 1.25 million shares done, for a market capitalisation of RM262.86 million.