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On Sept 3, MMAG appointed Datuk Rathakrishnan Vellaisamy (pic) as a non-executive chairman of the board.

PETALING JAYA: MMAG Holdings Bhd, which made news recently for its plans to provide an integrated Covid-19 testing system, has a new major shareholder — a party connected to Bestinet Sdn Bhd, sources say.

A total of 200 million shares in the ACE Market-listed company crossed in an off-market transaction yesterday, equivalent to a 19.5% stake.

Sources said the buyer of the block was JR Joint Resources Holdings, the holding company of Bestinet.

The block of shares crossed hands at RM1.50 per share, at a total price of RM300mil.

Currently, the largest shareholder of MMAG is its non-independent, non-executive director Chan Swee Ying, who holds a 26.48% stake.

This is followed by the group’s chief financial officer Kenny Khow, whose direct and indirect interests total 14.31%.

In early July, Datuk Khan Mohd Akram Khan, who was executive chairman and one of the major shareholders, left the company after divesting his 7.48% stake.

Bestinet is the pioneer of an end-to-end platform for the management of foreign workers in Malaysia.

On Tuesday, MMAG’s wholly-owned subsidiary MMANTAP Sdn Bhd entered into an exclusive partnership agreement with JR Joint Resources.

The agreement will see MMANTAP supporting JR Joint Resources in executing its obligations as a consultant and service provider to recruit, supply and provide total management solutions of foreign workers for the East Coast Rail Link (ECRL) project.

On Sept 3, MMAG appointed Datuk Rathakrishnan Vellaisamy (pic) as a non-executive chairman of the board.

Rathakrishnan is also the managing director of Bestinet where he oversees and manages the day-to-day operations of the company which specialises in migrant worker solutions.

MMAG has attracted a lot of trading interest, especially after it entered into an exclusive partnership agreement with JR Joint Resources to provide total management solutions of foreign workers for China Communications Construction (ECRL) Sdn Bhd (CCCECRL).

CCCECRL is the main contractor for the 640-km multi-billion-ringgit ECRL project.

The counter’s recent popularity in the market sent its price soaring to a 16-year-high of RM1.80 yesterday, which was an increase of 31 sen or 20.81%.

A total of 49.24 million shares changed hands in the open market.

StarBiz reported that the exclusive partnership agreement is forecast to contribute a revenue of some RM400mil over five years to MMAG.

This is based on an estimate of 2,000 foreign workers.

Rathakrishnan said that profits arising from the ECRL agreement that JR Joint Resources is entitled to will be shared 70:30 in favour of MMANTAP.

Last Friday, MMAG was hit with an unusual market activity (UMA) query from Bursa Malaysia on the sharp rise in the price and volume of MMAG shares recently.

In its response to the query, the group said it was in early talks with a party to acquire aircraft and licences, which are expected to boost its logistics and courier services business, Line Clear Express and Logistics.

MMAG had also announced on Sept 11 that it had acquired a company called Maasdots Sdn Bhd, which has a health screening system called Travellers Advanced Health Screening System (TAHSS).

It clarified in a filing with Bursa Malaysia yesterday that the system is owned by Bestinet Technology Sdn Bhd, while Maasdots has the rights to promote, sell and use it.

MMAG also has plans to work with eMedAsia Sdn Bhd, in the implementation of TAHSS to ensure maximum coverage and network penetration for users.

https://www.thestar.com.my/business/business-news/2020/09/18/new-major-shareholder-emerges-in-mmag

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