KUALA LUMPUR: Green Packet Bhd is expecting an internal rate of return (IRR) of up to 30% over the next four years for its investment in G3 Global Bhd’s (formerly Yen Global Bhd) Internet of things (IoT) business venture, which it anticipates will break even by the first quarter of next year.

On Aug 3 last year, Green Packet announced it had bought a 22% stake in G3 Global for RM18.15 million via an off-market deal.

In the same month, Atilze Digital Sdn Bhd, G3 Global’s wholly-owned subsidiary, said it was collaborating with Axiata Group Bhd to explore and develop IoT opportunities across Southeast Asia, with an initial focus on connected car solutions and the commercialisation of city-wide, low-power, long-range wireless communication (LoRa) network deployments.

“Axiata is bringing a lot of regional reach to Atilze, but we don’t expect to see big numbers for the time being. It could break even by the first quarter of next year. Like other business cases, we usually evaluate it based on a five-year period. Our targeted IRR is about 20% to 30% during this period,” Green Packet chief executive officer Tan Kay Yen told reporters after the group’s annual general meeting yesterday.