SMRT gets shareholders’ nod to transform into a pure play IoT solutions provider

SMRT Holdings Bhd’s shareholders have approved its plans to acquire 1.8 million ordinary shares in N’osairis Technology Solutions Sdn Bhd (NTS), representing the remaining 36% equity interest in NTS from Permata Kirana Sdn Bhd for RM72 million cash.

At its EGM today, SMRT shareholders also approved the proposed disposal of 100% equity interest in SMR Education Sdn Bhd (SMRE) to Special Flagship Holdings Sdn Bhd (SFHSB) for a disposal consideration of RM49.5 million to be satisfied entirely via cash.

Also approved was the proposal to establish a share grant plan of up to 20% of the total number of issued shares of SMRT – excluding treasury shares, if any- for the directors and employees of SMRT and its subsidiaries.

SMRT MD Maha Palan said the group vision for the future is to essentially transform SMRT into a pure play Internet of Things (IoT) solutions provider. Currently, SMRT has two business segments – technology and education.

“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,” Maha said in a statement today.

Since the acquisition of its initial stake in NTS back in 2016, Maha said SMRT have been meticulously cultivating the seeds of growth and are seeing the fruits of its labour as NTS has been growing at an exciting pace.

Hence, he said 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 Proposals,” Palan concluded.

For the financial year ended December 31 2021, NTS’ revenue jumped 27.4% to RM51.1 million from RM40.1 million a year ago. Meanwhile, profit attributable to owners of the company (PATAMI) surged 43.5% to RM20.1 million versus RM14 million previously.

SMRT said that the double-digit top-and bottom-line growth was mainly driven by higher orders for three NTS’ IoT services as well as the progressive recovery of existing contracts in hand cumulated since 2019.

SMRT said the proposals are expected to be completed by the second quarter of 2023 barring any unforeseen circumstances and subject to all the required approvals being obtained.

SMRT shares gained 1 sen or 1.55% to close at 65.5 sen today with a market capitalization of RM293 million. –TMR