China firm buys into Securemetric


Meanwhile, Securemetric CEO Edward Law acknowledged the entry of Feitian Technologies into his company. He told StarBiz that Feitian Technologies is a well- established technology firm in China.9Some of the Securemetric products. - Filepic)

PETALINIG JAYA: China’s Feitian Technologies Co Ltd has acquired 20 million shares in Ace Market-listed Securemetric Bhd, Bloomberg data showed.

The entry of Shenzen-listed Feitian Technologies confirmed an earlier StarBiz report.

Following the purchase of this block through an off-market deal, Feitian will own up to 8.2% of Securemetric.

When contacted via email, Feitian Technologies’ chief financial officer Zhu Bao Xiang said the acquisition is a friendly one, and added that Feitian intends to acquire more shares in Securemetric, if the opportunity arises.

“Feitian Technologies already has a good working relationship with Securemetric as we are the supplier of some key hardware components to them.

“Our stake buy is an effort to strengthen that working relationship and we hope to increase our business collaboration going forward. We are also on the lookout to raise our stake if the opportunity arises,” Zhu said via email.

Zhu confirmed that it is not Feitian Technologies’s intention to launch a takeover of Securemetric.

“No, that is not our intention. We already have a good working relationship with Securemetric. As mentioned, our entry into Securemetric is to strengthen our working relationship and hopefully to have more business collaboration going forward.

“We are in the similar area of technology and cybersecurity which is a fast growing business area which holds vast potential. “The South-East Asia market is one that we intend to grow into,” Zhu said via email.

Meanwhile, Securemetric CEO Edward Law acknowledged the entry of Feitian Technologies into his company. He told StarBiz that Feitian Technologies is a well- established technology firm in China.

“We have had a long-term relationship with them as they are a supplier of some hardware components that are used in the security product offering of Securemetric.

“What we are excited about is the increased technology collaboration that will likely come about following their presence as a shareholder of Securemetric. We are both in the same area of technology and cybersecurity, and hence, there are vast amounts of collaboration and technology transfer possibilities,” Law added.

Listed on Nov 13, 2018, Securemetric focuses on software licensing protection, two-factor authentication, advanced identity and access management, public key infrastructure and cryptography.

As for Feitian Technologies, it is the top supplier of user authentication and transaction security for China’s online banking.

Feitian Technologies has a market capitalisation of 5.86 billion yuan (RM3.56bil) and trades at a historical price earnings multiple of 40 times, based on Bloomberg data.


Corporate News , M&A , Securemetric , China , Feitian , Rechnologies , Zhu Bao , Law ,

   

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