Dagang Nexchange proposes capital reduction for subsidiary

PETALING JAYA: Dagang Nexchange Bhd has proposed a selective capital reduction and repayment exercise for its 71.25% subsidiary Dagang Net Technologies Sdn Bhd for RM1.50 a share.
In a filing with the stock exchange, Dagang Nexchange said this would allow the minority shareholders of Dagang Net to encash their investment as a concession awarded by the government will expire on September 24, 2016.
Dagang Net is involved in the development, management and provision of business to business e-commerce and computerised transaction facilitation services.
Besides Dagang Nexchange, Dagang Net's current shareholders are Juasa Holdings, Tabung Haji, BIMB and Datuk Seri Syed Hussein.
Following the exercise, Dagang Nexchange will be left with two wholly-owned subsidiaries, namely TEB Systems Integrators Sdn Bhd and TEB Quantum Technology Sdn Bhd, which are engaged in providing expertise in IT project management, consultancy and solutions as well as the supply of hardware, software and peripherals.