PETALING JAYA: Shareholders of SMRT Holdings Bhd have approved the proposed acquisition of the remaining 36% equity interest that SMRT does not own in N’osairis Technology Solutions Sdn Bhd (NTS) from Permata Kirana Sdn Bhd.
The purchase consideration of RM72 million will be satisfied entirely in cash.
At an extraordinary general meeting (EGM) today, shareholders also gave the nod for the proposed disposal of 100% 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 in cash.
They also approved the proposed establishment of a share grant plan of up to 20% of the total number of issued shares of SMRT (excluding treasury shares, if any) for directors and employees of SMRT and its subsidiaries.
Speaking after the conclusion of its EGM, SMRT Group managing director 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 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 pro-posals.”
For the financial year ended Dec 31, 2021 (FY21), NTS’ revenue jumped 27.4% to RM51.1 million from RM40.1 million a year ago. Meanwhile, profit attributable to owners of the company surged 43.5% to RM20.1 million versus RM14 million for FY20.
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 approvals being obtained.
