SMTRACK 0169 SMTRACK BERHAD, five other listed firms in 5G joint venture
KUALA LUMPUR: SMTrack Bhd is leading a consortium of six listed firms to invest in a 5G venture via 5G Infratech Solutions Sdn Bhd.
It is learnt that the consortium will provide funding for the planned capital-intensive 5G venture.
Besides SMTrack, other consortium parrtners are Country Heights Holdings Bhd, Jiankun International Bhd, Sersol Bhd, Techna-X Bhd and MQ Technology Bhd.
The companies are scheduled to sign a heads of agreement on the venture later this morning.
Through the government plan on the national 5G rollout, the consortium - via 5G Infratech - was looking at a joint venture with a strategic target company in the telecommunications sector, sources said.
The target company, which is mainly involved in the construction and engineering of telecommunication infrastructure including 5G rollout, is expected to formalise the paperwork with the consortium at about 10.30am today.
They will jointly collaborate and fulfill the government's aspiration to drive the development and roll out of 5G infrastructure network.
"The consortium will be either holding a substantial stake in the target company or provide initial and subsequent funding in rolling out of 5G network," a source said.
Meanwhile, last Thursday, Datuk Seri Tan Choon Hwa bought an extra five million shares in SMTrack from an open market, reaffirming him as as substantial shareholder of the company with 35.5 million shares or 5.5 per cent of its issued shares.
Another director, Datuk Wira Justin Lim Hwa Tat, was expected to follow suit early next week according to a person close to the deal.
The buying is necessary to regain control over voting rights after their shareholdings were diluted to below five per cent pursuant to an enlargement of SMTrack's share capital arising from the conversion of redeemable convertible notes.
On Jan 6, Tan surfaced as the radio frequency identification solutions company's new substantial shareholder, after raising his stake to 5.4 per cent from 3.16 per cent previously.
The next day, Lim - who is managing director of Sersol - emerged as a new substantial shareholder after acquiring 29 million shares or 5.14 per cent stake via an open market.
On the same day, Tan and Lim were appointed as directors of SMTrack.
SMTrack, which was the second most actively traded stock on Friday, saw 169.2 million shares traded.
It closed unchanged at 29 sen after staging a sharp rebound towards the closing.
SMTrack has risen from 16 sen when Tan Sri Lee Kim Yew, who is the founder and executive chairman of Country Heights group, emerged as a substantial shareholder on Dec 29 2021, after acquiring 28.5 million shares or a 5.05 per cent stake on the open market.
https://www.nst.com.my/business/2022/01/763600/smtrack-five-other-listed-firms-5g-joint-venture
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