SCICOM MSC Bhd and Microlink Solutions Bhd have inked a joint-venture (JV) agreement to collectively bid for eGovernment solutions and services tenders.
The JV vehicle, Asian Contact Solutions Sdn Bhd (ACS), will be owned equally by both companies, and will be combining their “skills, expertise, experience, capabilities, and resources,” according to a Bursa filing dated July 22.
The joint venture is in line with Scicom’s plan to expand its eGovernment solutions and services, and is expected to be beneficial. The JV is expected to be completed by the third quarter of 2020.
“In view of the increasing digital and technology adoption by public and private sectors in Malaysia, the board is of the opinion that the prospects for the proposed JV are promising,” said Scicom, which will also be funding its investment with internally generated funds.
While the JV is not expected to have a material effect on the financials of Scicom for the financial year ending June 30, 2021, it is expected to contribute positively to Scicom’s future earnings.
The board of directors for ACS will have two directors from each parent, with a fifth director a “qualified individual agreed between the two parties.”
Scicom will also be in charge of the day-to-day management of ACS, which includes financial management, business planning and management, operational management and human resource management.
At the end of the trading day, Scicom’s shares were last done at RM1.14, up 2 sen, with 5.97 million shares traded. – July 22, 2020
