KUALA LUMPUR (April 18): Shareholders of SMRT Holdings Bhd have approved the group’s plan to fully acquire a subsidiary engaged in technology business and to exit its education business, which will transform SMRT into a pure play Internet of Things (IOT) solutions provider.

In an extraordinary general meeting (EGM) held on Tuesday (April 18), the majority (99.49%) of SMRT’s shareholders voted for the proposed acquisition of the remaining 36% stake not already owned by the group in N'osairis Technology Solutions Sdn Bhd (NTS) from Permata Kirana Sdn Bhd for RM72 million cash, SMRT’s bourse filing showed.

It also saw 99.49% of its shareholders agreeing to the proposed disposal of its entire stake in SMR Education Sdn Bhd to Special Flagship Holdings Sdn Bhd (SFHSB) for RM49.5 million, cash. SMR Education holds 42.08% of Minda Global Bhd (MGB). 

Besides that, shareholders have greenlit the proposed establishment of a share grant plan involving up to 20% of the total number of issued shares of SMRT (excluding treasury shares, if any) for the directors and employees of SMRT, as well as its subsidiaries.

SMRT group managing director Maha Ramanathan Palan said the acquisition of NTS will enable SMRT to fully capitalise on NTS’s robust growth and prospects, and greatly enhance SMRT’s earnings potential moving forward and boost value for its shareholders.

NTS, an information technology (IT) managed service provider, was a 64%-owned subsidiary of SMRT. It posted a net profit of RM20.11 million on a revenue of RM51.1 million for the financial year ended Dec 31, 2021. 

“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,” Maha said.

“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.”

The two proposed deals are deemed related party transactions (RPTs), as Maha is a shareholder of both NTS and Permata Kirana. Meanwhile, his father Tan Sri Palan Ramanathan Chettiar and his mother Puan Sri Kamatchi Valliammai Malayandi jointly own SFHSB, and are major shareholders of SMRT.

SMRT’s share price closed one sen or 1.55% higher at 65.5 sen on Tuesday, valuing the group at RM293.13 million. The stock has jumped more than five times over the past six months, from when it was trading at 12 sen.

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SMRT Holdings seeks to exit education business, become a pure play IT solutions firm