The company intends to change its name to Hextar Technologies Solutions as it aims to become a major force in the ICT industry
By FAYYADH JAAFAR / Graphic DZUL
COMPLETE Logistic Services Bhd will be seeking shareholder approval for its plan to diversify operations by venturing into the information, communications and technology (ICT) sector.
In line with this move, the company intends to change its name to Hextar Technologies Solutions Bhd as it aims to become a major force in the ICT industry.
The proposed diversification will also enable Complete Logistic Services to diversify into new viable businesses and, therefore, reduce the company’s reliance on its existing businesses.
To fund this strategic move, Complete Logistic Services entered into a share sale agreement with its controlling shareholder Datuk Ong Choo Meng to sell its stake in Classic Scenic Bhd for RM32 million cash.
Complete Logistic Services will sell 36 million shares or 14.94% in Classic Scenic for 76 sen a share as well as 18 million warants at 26 sen per warrant.
Complete Logistic Services currently holds a 20.98% stake in Classic Scenic, according to Bloomberg data. Ong is the controlling shareholder and MD of Hextar Global Bhd and also has a stake in SWS Capital Bhd.
In its exchange filing yesterday, Complete Logistics Services noted the ICT business will be headed by Datuk Seri Gey Ka Hong, who has over 25 years of experience in the ICT industry, and is the current group’s CEO.
Classic Scenic is principally engaged in the manufacturing and sales of wooden picture frame mouldings and other timber products to markets like North America, Australia and Malaysia.
Complete Logistic Services’ main focus remains within the logistics industry, pro- viding total logistic services providers including lorry transportation services, project logistics and door-to-door delivery services; provision of warehouses for rent; trading of building materials and goods; insurance agency and investment holding.
Complete Logistic Services stated it may embark on viable ventures relating to the technology businesses through organic means or otherwise, including strategic businesses and investments, projects, joint ventures, collaborative arrangements, and/ or mergers and acquisitions of suitable businesses and investments in the ICT industry.
The plan will require shareholders backing which Complete Logistic Services aims to seek in an extraordinary general meeting to come.
“To strengthen the group’s earnings, Complete Logistic Services will continuously be on the lookout for viable investment opportunities which would be synergistic to the group’s existing businesses and technology businesses. The proceeds will provide the group with readily available funds to undertake viable investment opportunities as and when they arise,” its filing noted.
Complete Logistic Services may also recruit other qualified personnel with relevant expertise and experience in the ICT industry to support its drive.
The company’s operations have been adversely impacted by the Movement Control Order and the unabating spread of Covid-19.
Complete Logistic Services’ shares closed two sen higher at RM3.05 a share on the news yesterday while Classic Scenic shares closed unchanged at 68 sen.