KUALA LUMPUR: SMRT Holdings Bhd has proposed to acquire 1.80 million ordinary shares in N'osairis Technology Solutions Sdn Bhd (NTS), representing the remaining 36.0 per cent equity interest in NTS from Permata Kirana Sdn Bhd for RM72 million cash.
In a filing with Bursa Malaysia today, SMRT also said that it has proposed to dispose of 69.67 million ordinary shares in its wholly-owned subsidiary, SMR Education Sdn Bhd (SMRE), representing 100.0 per cent equity interest in SMRE, to Special Flagship Holdings Sdn Bhd for RM49.45 million cash.
SMRE is principally involved in investment holdings, whereby it currently holds 42.08 per cent of Minda Global Bhd (MGB). Upon completion of the proposed disposal, SMRT would cease to hold 100 per cent equity interest in SMRE and 42.08 per cent in MGB.
SMRT has also proposed to establish a share grant plan of up to 20.0 per cent of its total number of issued shares for the directors and employees of SMRT and its subsidiaries.
On the proposed acquisition, the group said it was part of SMRT's group-wide strategy to streamline its operations and enables it to purely focus on its technology business through the acquisition of NTS.
The group also seeks to rationalise and streamline its technology business, which has been more profitable than its education business throughout recent years.
Upon completion of the proposed acquisition, SMRT will hold a 100 per cent equity interest in NTS, which will become its wholly-owned subsidiary.
SMRT said the proposed disposal was undertaken to enable the group to streamline its operations to purely focus on its technology business, which has been the group's more profitable business segment.
"In the future, in order to improve its own financial position, MGB may undertake its own business plans that may be capital intensive over the medium to long term due to the nature of the business, being the education business,” it said.
On the proposed share grant, the group noted that it serves as a long-term incentive plan to motivate, reward and retain the eligible directors and employees who were instrumental to the continued success of the group.
”In addition, the plan to motivate and reward the eligible persons for their contributions and services that were considered vital to the operations to sustain the group’s growth and profitability.
The proposed acquisition and disposal are expected to be completed by the second quarter (2Q) of 2023, while the proposed establishment of the share grant plan is expected to be implemented by 2Q 2023. - Bernama