Omesti ups stake in Microlink to 51.77%

TheEdge Thu, Apr 01, 2021 06:39pm - 1 month ago

KUALA LUMPUR (April 1): Software and application developer Omesti Bhd has acquired a total of 4.94 million shares in Microlink Solutions Bhd from the open market for RM9.71 million, or an average RM1.97 per share.

In a bourse filing, Omesti said its wholly owned Omesti Holdings Bhd (OHB) had, between Sept 2, 2020 and March 31, 2021, acquired the shares, which represented 2.05% of Microlink's total number of issued shares.

Following the acquisitions, Omesti now controls 124.91 million Microlink shares, representing 51.77% equity interest in the company, via OHB.

Omesti said the Microlink shares were acquired at prevailing market prices of Microlink shares at the time of acquisitions and were funded through internally-generated funds.

“After having reviewed the investment portfolio of the company, the acquisitions provide an opportunity for Omesti to increase its stake in Microlink to 51.77%,” it said, adding that the expansion is for potential value enhancement.

Microlink is principally engaged in investment holding and provision of research and development on information technology solutions to the financial services industry.

“The board does not envisage any specific risk associated with the acquisitions, apart from the general business and global economic risks faced by Microlink, which are similar to the operational risks that Omesti is already accustomed to, given that Omesti is in the same line of business as Microlink.

“Hence, the board believes that the experience and expertise of its management team will enable the group to mitigate these risks effectively,” it said.

Omesti closed 0.5 sen or 1.05% higher at 48 sen today, valuing the group at RM255.59 million.

Meanwhile, Microlink closed one sen or 0.38% lower at RM2.61, valuing the group at RM629.77 million.  

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