Telekom Malaysia Bhd (TM) has entered into a deal with UEM Sunrise Bhd and Iskandar Investment Bhd (IIB) to form a joint venture (JV) company that will offer and operate smart services in Nusajaya, Johor.
TM will hold a controlling stake of 51% in the JV at a cost of RM31 million.
Khazanah Nasional Bhd is the major shareholder of UEM Sunrise via its wholly owned subsidiary, UEM Group Bhd, as well as being the major shareholder of TM and IIB, and Khazanah is deemed to be interested in the proposed JV.
Both TM and UEM Sunrise made the announcement to Bursa Malaysia yesterday of the related party transaction which will see TM’s wholly owned subsidiary Intelsec Sdn Bhd forming the JV company with UEM Sunrise’s wholly owned unit UEM Land Bhd and IIB’s wholly owned Iskandar Innovations Sdn Bhd (IISB).
The JV company will have RM61 million authorised share capital comprising 61 million shares of RM1 per share. UEM Sunrise will hold a 39% share of the JV company with the remaining 10% going to IIB.
All the parties will also subscribe to an additional capital contribution of RM3 million within 18 months of the JV shareholder agreement and further capital contribution of RM43 million, both in agreed proportion.
“Today’s JV is testament of our support and commitment towards the development of the area, hence realising the smart and connected Nusajaya aspiration,” said TM group CEO Tan Sri Zamzamzairani Mohd Isa in a statement yesterday.
The JV company will operate as a managed services company where it will design and build the smart city infrastructure as well as provide smart building and smart city services.
Apart from that, the JV company will also promote a localised partnership ecosystem and will continuously explore opportunities to capture new development projects in the Nusajaya area for smart services.
According to Zamzamzairani, this is the first collaboration of its kind between a service provider and master developers to provide smart city infrastructure and services, and the collaboration further strengthens TM’s position as Malaysia’s leading integrated telecommunication and ICT service provider and in line with its aspiration of becoming an information exchange.
UEM Sunrise is the master developer of Nusajaya and its ED Datuk Izzaddin Idris said a Smart and Connected Nusajaya Master Plan has been established, which aims to develop Nusajaya into one of the world’s leading interconnected smart communities.
“The proposition further enhances Nusajaya’s attractiveness to both investors as well as potential residents and business locaters,” he said.
IIB’s president/CEO Datuk Syed Mohamed Syed Ibrahim said the creation of the ecosystem for a smart environment will make Iskandar Malaysia an attractive investment destination.
TM said it continues to support the development of Nusajaya by providing technology and services including making its high speed broadband service UniFi available in Nusajaya since July 2010.
In addition, TM had successfully brought UniFi to four of the five flagship zones in Iskandar Malaysia — Johor Baru city, Nusajaya, EduCity and Medini, Eastern Gate Development, and Senai-Skudai airport city.