SMRT Gets Shareholders’ Nod to Go All in On IoT Solutions Business

“The acquisition of the remaining stake in NTS provides us with great flexibility in strategic planning and implementation,” he said, adding SMRT will be able to fully capitalize on the robust growth prospects of NTS.

“We are upbeat on the outlook of the group, underpinned by the aforementioned factors and our clear growth plans supported by a stronger financial position upon completion of the proposals,” Palan said.

SMRT Holdings Bhd has been given the go ahead by shareholders to dispose 100% of its education segment SMR Education Sdn Bhd to Special Flagship Holdings Sdn Bhd for RM49.5 million in cash to focus on its fast-growing technology business in the Internet of Things (IoT).

Apart from this acquisition, the group was also given the go ahead to acquire a 36% equity interest in its subsidiary N’osairis Technology Solutions Sdn Bhd (NTS) from Permata Kirana Sdn Bhd for RM72 million in cash.

A proposed establishment of a share grant plan of up to 20% of the total number of issued shares (excluding treasury shares) for directors and employees of SMRT and its subsidiaries was also given the nod.

These proposals are expected to be completed by the second quarter of 2023.

In a statement, SMRT said the acquisition of the remaining stake in its technology subsidiary NTS would enable it to fully reflect the financial performance and growth potential of IoT solutions.

IoT describes objects with sensors, processing ability, software and other technologies that connect and exchange data with other devices and systems over the internet or other communications networks.

SMRT group managing director Maha Palan said the vision for the future of the company is essentially to transform SMRT into a “pure play” IoT solutions provider.

For the year ending Dec 31, 2021, NTS’ revenue rose 27.4% year-on-year (y-o-y) to RM51.1 million from RM40.1 million a year earlier. Profits attributable to owners of the company rose 42.5% y-o-y to RM20.1 million compared to RM14 million for 2020.

The statement noted the double-digit top and bottom-line growth were driven by higher orders for NTS’ IoT services and as well as the progressive recovery of existing contracts in hand since 2019.

SMRT is an investment holding company listed on the ACE Market since 2007.