RADIO frequency identification (RFID) solution specialist SMTrack Bhd endured a volatile trading session today even after having cemented its position as the consortium leader of six Bursa Malaysia-listed companies – five of which are penny stocks – with little known 5G Infra Tech Solutions Sdn Bhd.
The consortium whose members also consist of Country Heights Holdings Bhd, Jiankun International Bhd, Sersol Bhd, Techna-X Bhd and MQ Technology Bhd has officially inked the much awaited head of agreement (HOA) with Bumiputera-owned 5G Infra Tech which is mainly involved in the construction and engineering of telecommunication infrastructure including 5G roll-out in Malaysia.
The HOA will enable the consortium partners to undertake a series of corporate exercises to raise fund and finance 5G and fibre optics-related projects by Digital National Bhd (DNB) as well as the Malaysian Communications and Multimedia Commission (MCMC).
Although it was the day’s most active stock, SMTrack closed today’s trading down 5.5 sen or 18.97% to 23.5 sen (trading range: 21 sen to 29.5 sen) with 153.26 million shares traded, thus valuing the company at RM150 mil.
At the agreement signing event, 5G Infra Tech received endorsement from the Unit Peneraju Agenda Bumiputera (TERAJU) chairman Datuk Seri Mohd Redzuan Mohd Yusoff.
“We support the business structure proposed by 5G Infra Tech,” he pointed out. “The consortium which is led by SMTrack would enable our Malaysian 5G network project to be locally funded and thus saving billions of forex outflow for our country.”
Redzuan is also hopeful that many more opportunities will open up in the 5G project ecosystem as there are a number of Bumiputera companies attending this event.
“This is aligned with one of our key economic growth area, namely digital economy under Tindakan Pembangunan Bumiputera 2030 which is meant to empower Bumiputera involvement in high impact businesses,” he added.
SMTrack’s deputy executive chairman Azmi Osman said the consortium foresees many other joint ventures funding the installation of 5G telecommunication towers in Malaysia.
“5G Infra Tech will undertake its maiden 5G projects in collaboration with Ennova Sdn Bhd which is already one of the contractors for DNB’s 5G projects,” he enthused. “The investment in 5G telecommunication companies such as Ennova will definitely improve the consortium’s revenue stream and bottom line.”
Ennova which is mainly involved in the construction and engineering of telecommunication infrastructure including 5G roll-out has formalised a paperwork with the consortium via 5G Infra Tech at today’s event.
5G Infra Tech’s executive chairman Datuk Saiful Nizam Mohd Yusoff said Ennova is the first to sign a memorandum of agreement (MOA) with 5G Infra Tech to finance the roll-out of 5G network.
“Currently, Ennova plans to install and maintain 350 telecommunication towers all over Kuala Lumpur,” he noted. “With the huge financing from 5G Infra Tech, Ennova can easily roll out 10,000 towers all over Malaysia.”
Sersol managing director of Sersol, Datuk Wira Justin Lim Hwa Tat hoped that shareholders, potential investors as well as government bodies and the private sector will to support the consortium members in their planned exercise in the coming weeks.
“We are optimistic that these six listed companies which consist of two IT companies, two property developers and two investment holdings will find the right synergy drive to make this exercise a profitable and successful venture,” he added. – Jan 17, 2022
