Serba Dinamik buys 30% of India’s eNoah, allocates RM30 mil for IT projects

KUALA LUMPUR (Dec 5): A tech unit of Serba Dinamik Holdings Bhd is acquiring 30% of IT solutions provider eNoah iSolution India Pvt Ltd for RM15 million, as part of the group’s expansion into tech sector, where it has earmarked RM30 million for the execution of existing and upcoming projects next year. 

Serba Dinamik’s wholly-owned subsidiary Serba Dinamik IT Solutions Sdn Bhd (SDIT) signed a share purchase agreement with eNoah to acquire 251,152 shares, representing approximately a 30% stake in the latter, for US$3.6 million or RM14.94 million. Both parties also signed a shareholders’ agreement that allows SDIT to regulate affairs of eNoah and their respective rights as the company’s shareholders. 

The acquisition will be financed through the RM95 million proceeds from Serba Dinamik’s initial public offering allocated for business expansion, through investment and acquisition. 

At the signing ceremony, Serba Dinamik’s group chief executive officer Datuk Dr Mohd Abdul Karim Abdullah said while the company’s focus remains very much on providing engineering services, it foresees potential growth for its IT division, which currently contributes a little over 1% to the group’s total revenue.  

“Being a substantial shareholder of eNoah enables us to access state-of-the-art technology in the global market,” he said, adding it gives Serba Dinamik a toehold into the Indian market, as well as to further strengthen the company’s market share in the region. 

“We see room for improvement in this segment, especially with IT being the catalyst for changing lifestyles in the future.” 

Abdul Karim said both parties are collaborating to participate in sizeable projects, including one within the infrastructure sector in Singapore.  

The partnership is expected to not only boost some of Serba Dinamik’s existing projects related to systems, applications and products development, and the upgrading of users’ systems in Malaysia, but pave the way for the group to aggressively penetrate into the larger US market. 

eNoah iSolution is established in India and currently has a presence in a number of other countries, including the US, Singapore, Australia and Malaysia. 

It is principally engaged in providing information technology solutions, business process management and support services, as well as software and information technology products and platforms to clients. Its business process outsourcing (BPO) and IT solutions are offered to Fortune 500 companies worldwide in the integrated health, insurance, manufacturing and automative domains. 

Serba Dinamik closed seven sen or 1.9% lower to RM3.68 today, valuing the group at RM5.4 billion.

Source: The Edge Markets

Issued Date: 5th December 2018, Wednesday