RADIO-frequency identification (RFID) solution provider SMTrack Bhd whose share price gained traction recently following the emergence of property tycoon Tan Sri Lee Kim Yew as a substantial shareholder has “another suitor lurking” in the form of a government-linked company (GLC).
The GLC which is a company owned by the Ministry of Finance Inc (MOF Inc) has made its interest known in a letter addressed to SMTrack after a meeting between representatives of both parties.
The investment proposal in SMTrack is currently being assess under the GLC’s investment policy and guideline. Coincidentally, SMTrack is traded on the ACE Market of Malaysia, a market designed for companies with growth prospects.
Set up more than half a century ago, some of the investment principles of the GLC are to enter undertakings which would bring high economic returns. Its investment principles further state that when entering into joint ventures, the GLC wishes to excel as the majority stockholder with controlling interest over operations.
The recent positive stock momentum has also attracted various parties to take up substantial stake in SMTrack.
Lee, who is also Country Heights Holdings Bhd executive chairman acquired 28.5 million shares or 5.051% stake in SMTrack on Dec 29 from the open market, according to a Bursa Malaysia filing.
There is also rumor circulating that “a prominent Datuk Seri” will become a substantial shareholder of the company soon.
SMTrack remained in the red for the financial period ended Oct 31, 2021 with a net loss of RM1.2 mil from RM1.6 mil in the same time frame a year ago while its revenue shrank further to RRM283,000 from RM425,000 previously.
Note that SMTrack had on Aug 3 last year announced the change of financial year end from July 31, 2021 to Dec 31, 2021.
At 11.10am, the company was down 1.5 sen or 5.88% to 24 sen with 267.09 million shares traded (second most active stock at the time of writing), thus valuing the company at RM135 mil. – Jan 5, 2022
