Khazanah divests entire equity interest in Time Engineering for RM70mil

PETALING JAYA: Khazanah Nasional Bhd has divested its entire equity interest of 45.03% in Time Engineering Bhd to Censof Holdings Bhd at 20 sen per share for RM69.8mil cash.

This confirms StarBiz’s report on Aug 15, which said that Censof, a low-profile information technology (IT) solutions provider, was close to becoming Time Engineering’s new shareholder and would be paying between 18 sen and 28 sen for the stake in the company.

At 20 sen per share, it is a 40% discount to Time Engineering’s last traded price of 28 sen.

Censof shares were higher ahead of the announcement, closing seven sen up to 48.5 sen.

Khazanah said the decision was made following an extensive tender process it had initiated to select a new shareholder that would be able to develop Time Engineering to its next phase of growth.

Time Engineering’s main business is providing solutions for e-commerce, cyber security and integrated intelligent infrastructure. It said the divestment involved a three-stage tender process, namely, pre-qualification, indicative bid and binding.

“The tender facilitated a transparent process through which a group of bidders were selected to proceed to each of the following stages based on a set of evaluation criteria – price, business plan and strategy for Time Engineering, financial track record and availability of funds, and experience in the information and communication technology sector.

“Censof was selected out of the 10 interested parties based on the merit of its overall bid and a defined strategy in line with our divestment objectives for Time Engineering, following a transparent and stringent tender process presided by an independent evaluation panel,” said Khazanah managing director Tan Sri Azman Mokhtar in a statement.

The divestment price was determined based on the fundamentals of Time Engineering, reflecting the remaining concession period with the Customs department up to September 2014 by Time Engineering’s majority-owned subsidiary, Dagang Net Technologies Sdn Bhd (DNT), and its other two subsidiaries which are operating at a loss, Khazanah said.

DNT had submitted a tender proposal for the new uCustoms system to be implemented by the Customs, it added.

“The divestment is in line with Khazanah’s overall strategy of disposing non-core assets in a gradual and orderly manner.”

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