KUALA LUMPUR (July 22): Microlink Solutions Bhd is partnering Scicom (MSC) Bhd to collectively bid for e-government solution jobs.
In a filing to Bursa Malaysia today, Microlink said it has inked a joint venture agreement with Scicom to take up a 50% stake in Scicom's wholly owned Asian Contact Solutions Sdn Bhd for RM5,000, which it will finance with internal funds.
The core business of the joint venture (JV) company is the provision of e-government solutions and services which include the design, development, implementation, operation and maintenance of software and the provision of associated support services.
Microlink and Scicom will each hold 5,000 shares, with Microlink funding the acquisition through internal funds.
Microlink said the two technology firms seek to draw upon the skills, expertise, experience and capabilities of each other for the benefit of the joint venture company.
In particular, itn oted that Scicom has experience in e-government solution services, alongside business process outsourcing services, e-commerce and digital marketing solution services and education services.
Microlink said the deal is consistent with its objective of seeking various strategic alliances and partnerships for synergistic benefits and believes the JV is expected to pave the way for future collaborations with Scicom.
The announcement comes after Microlink was slapped with an unusual market activity query by the local bourse on July 14, the same day its share price spiked 28.89% or 39 sen to a four-year high of RM1.74.
In response, Microlink said the group was in the final stage of negotiation for a potential joint venture (JV) with another company.
Shares of Microlink Solutions Bhd closed six sen or 3.43% lower today at RM1.69, giving it a market capitalisation of RM311.14 million. Year-to-date, the counter has almost doubled from when it was trading at 87.5 sen.