Serba Dinamik Holdings Berhad (“Serba Dinamik Holdings” or the “Company”), a global integrated engineering services provider, through its wholly-owned subsidiary, Serba Dinamik IT Solutions Sdn. Bhd. (“SDIT”), signed a share purchase agreement (“SPA”) with twelve (12) shareholders of eNoah iSolution India Pvt Ltd. (“eNoah”) today in relation to a proposed acquisition for a total of 251,152 ordinary shares, representing approximately 30% of equity interest in eNoah for a total purchase consideration of USD3.6 million, which is equivalent to approximately RM14.94 million, officially making SDIT a substantial shareholder of eNoah, and 30%-owned associate company of SDIT.
Simultaneously, SDIT had on even date entered into a shareholders’ agreement with eNoah and the remaining existing shareholders of the Company to regulate the affairs of eNoah and their respective rights as shareholders of eNoah. In addition, the purchase consideration will be satisfied entirely in cash, which will be financed through the RM95 million proceeds from the initial public offering of Serba Dinamik Holdings, allocated for business expansion through investment and acquisition.
eNoah, a reputed global industry leader, is principally engaged in providing information technology (“IT”) solutions, business process management and support services as well as software and information technology products and platforms to its clients. eNoah offers cutting-edge business process outsourcing (“BPO”) and IT solutions to Fortune 500 companies worldwide in the integrated health, insurance, manufacturing and automotive domains. eNoah’s matured and established service delivery setup helps clients pilot and steady state business and IT processes with a focus on metrics-driven outcomes that exceed customers’ service-level agreements (“SLAs”). Established in India, eNoah also has presence in other countries including the United States, Singapore, Malaysia and Australia with a total staff strength numbering approximately 600.
SDIT is principally involved in information and communications technology (“ICT”) software and solutions providing mainly industrial ICT applications. Over the years, SDIT has developed a suite of software packages for industrial applications which are sold either to customers on a standalone basis, packaged with other IT software solutions, or packaged together with the Company’s Operations & Maintenance and Engineering, Procurement, Construction and Commissioning contracts. SDIT is a Multimedia Super Corridor (“MSC”) Malaysia status company in recognition of its research, development and commercialisation of in-house developed software applications, namely AlignSoft and myPLANT.
Group Managing Director / Group Chief Executive Officer of Serba Dinamik Holdings, Dato’ Dr. Ir. Mohd. Abdul Karim bin Abdullah (“Dato’ Karim”) expressed, “Being a substantial shareholder of eNoah enables us to access state-of-the-art technology in the global market. It also brings us the opportunity to venture into the Indian market as well as further strengthen the Company’s market share in the region. We see room for improvement in this segment, especially with IT being the catalyst for changing lifestyles in the future. While the focus of our group remains very much on engineering services, we also foresee potential growth for our IT division.”
SDIT, assumed as the wholly-owned subsidiary of the Company, is recognised in the “others” segment in the financial results of Serba Dinamik Holdings. The segment also includes technical training, ICT solutions and supply of products and parts. In the recently-announced third quarter financial result ended 30 September 2018 (“Q3FY18”), the “others” segment contributed RM2.92 million revenue to the Group, showing a significant increase of 110.3% from the RM1.39 million posted in the preceding year ended 30 September 2017 (“Q3FY17”).
Furthermore, the unaudited consolidated profit after taxation and non-controlling interests of eNoah for the FYE 31 March 2018, recorded approximately USD 1.41 million, which equivalent to approximately RM5.85 million.
“With the established business model of eNoah, we are confident the Proposed Acquisition will allow the Group to gain a substantial stake in a profitable target,” Dato Karim further added.