MYEG raises stake in S5 with RM86.5mil share purchase

KUALA LUMPUR: My EG Services Bhd's unit MY EG Capital Sdn Bhd has entered into a share sale agreement with S7 Holdings Sdn Bhd for the purchase of an additional 118 million shares or 10% stake in S5 Holdings Inc for RM86.5mil, bringing its total interest in the company to 20%.

In a bourse filing, MYEG said S5 is a global integrated security solutions provider, delivering real solutions and quantum-leap advances to both governments and enterprises.

It added that S5 provides the expertise and solutions to meet national challenges in homeland security, defence, and intelligence, areas of vital importance to national interests.

According to its audited report, the net asset attributable to the shareholders of S5 amounted to RM50.25mil as at June 30, 2020, and its net profit amounted to RM28.53mil.

"MYEG as the leading e-government services provider in the region is committed to continuously broadening its product and service offerings to ensure it remains at the forefront of supporting national digital aspirations and enhancing government service delivery through the deployment of cutting-edge technology and innovations.

"In this connection, the Proposed Acquisition is consistent with these overarching objectives as S5’s business activities, solutions and systems are complementary to the Company’s existing and prospective service offerings, especially within the Immigration space in Malaysia," said MYEG.

The acquisition will be made with internally generated funds and is not expected to have any material effect on the gearing of the company for the financial year ending Dec 31, 2022.

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