SMRT Shareholders Approve Various Proposals Including Raising Stake In N’osairis For RM72 Million

Shareholders of SMRT Holdings Berhad have approved various resolutions at the recently held EGM including the proposed acquisition of the remaining 36.0% equity interest that SMRT does not own in N’osairis Technology Solutions Sdn Bhd from Permata Kirana Sdn. Bhd. for a purchase consideration of RM72.0 million.

Others include the proposed disposal of 100.0% equity interest in SMR Education Sdn Bhd to Special Flagship Holdings Sdn. Bhd. for a disposal consideration of RM49.5 million to be satisfied entirely via cash and the proposed establishment of a share grant plan of up to 20.0% of the total number of issued shares of SMRT for the directors and employees of SMRT and its subsidiaries.

Speaking after the conclusion of its EGM, the Group Managing Director of SMRT, Mr. Maha Palan said, “We are certainly excited that our shareholders understand and share our vision for the future of the Group, which is essentially transforming SMRT into a pure-play Internet of Things (“IoT”) solutions provider. The acquisition of the remaining stake in NTS provides us with greater flexibility in strategic planning and implementation. More importantly, it enables SMRT to fully capitalise on the robust growth and prospects of NTS. In turn, this would greatly enhance our earnings potential moving forward and boost the value for our shareholders.”

“Since the acquisition of our initial stake in NTS back in 2016, we have been meticulously cultivating the seeds of growth and we are seeing the fruits of our labour as NTS has been growing at an exciting pace. Hence, this development is particularly opportune given that NTS is prime for further growth. Looking ahead, we will continue to work tirelessly to keep up the healthy momentum while seizing the vast opportunities ahead of us both in Malaysia and overseas. All in all, we are upbeat on the outlook of the Group, underpinned by the aforementioned factors and our clear growth plans supported by a stronger financial position upon completion of the Proposals,” Mr. Palan concluded.

For the financial year ended 31 December 2021, NTS’ revenue jumped 27.4% year-on-year (“YoY”) to RM51.1 million from RM40.1 million a year ago. Meanwhile, profit attributable to owners of the company (“PATAMI”) surged 43.5% YoY to RM20.1 million versus RM14.0 million for FYE 31 December 2020. The double-digit top-and-bottom-line growth was mainly driven by higher orders for NTS’ IoT services as well as the progressive recovery of existing contracts in hand cumulated since 2019.

The Proposals are expected to be completed by the second quarter of 2023 barring any unforeseen circumstances and subject to all the required approvals being obtained.

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