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Serba Dinamik buys stake in Indian firm

By DASHVEENJIT KAUR / Graphic By TMR

Serba Dinamik Holdings Bhd’s unit, Serba Dinamik IT Solutions Sdn Bhd (SDIT), has entered into a share purchase agreement (SPA) to acquire a 30% equity interest in eNoah iSolution India Pte Ltd for RM14.94 million.

The SPA was signed with 12 eNoah’s shareholders yesterday in relation to a proposed acquisition for a total of 251,152 ordinary shares, representing 30% of equity interest for a total purchase consideration of US$36 million (RM149.4 million).

This officially makes SDIT a substantial shareholder of eNoah.

Serba Dinamik group MD and group CEO Datuk Dr Mohd Abdul Karim Abdullah said being a substantial shareholder of eNoah enables the company to venture into the information technology (IT) sector and allows its access to state-of-the-art technology in the global market.

“It also brings us the opportunity to venture into the Indian market and further strengthen the company’s market share in the region,” he told reporters after the signing ceremony in Kuala Lumpur yesterday.

The purchase consideration will be paid entirely in cash, to be financed through the RM95 million proceeds from the initial public offering of Serba Dinamik, that were allocated for business expansion through investment and acquisition.

Simultaneously, SDIT had also entered into a shareholders’ agreement with eNoah and the remaining existing shareholders of the company, to regulate the affairs of the latter and SDIT respective rights as the company’s shareholders.

Mohd Abdul Karim also said there are rooms for improvement in this segment, especially with IT being the catalyst for changing lifestyles in the future.

“While the focus of our group remains very much on engineering services, we also foresee potential growth for our IT division,” he added.

eNoah is principally engaged in providing IT solutions, business process management and support services, as well as software and IT products and platforms to its clients.

The India-based company also offers cutting-edge business process outsourcing and IT solutions to Fortune 500 companies worldwide in the integrated health, insurance, manufacturing and automotive domains.

“eNoah’s matured and established service delivery setup helps clients pilot and steady state business and IT processes with a focus on metrics-driven outcomes that exceed customers’ service-level agreements.”

The company also operates in other countries including the US, Singapore, Malaysia and Australia.

SDIT, on the other hand, is principally involved in information and communications technology (ICT) software and solutions providing mainly industrial ICT applications.

In Serba Dinamik’s financial results for the third quarter ended Sept 30, 2018, the others segment, which includes SDIT, contributed RM2.92 million revenue to the group, showing a significant increase of 110.3% from the RM1.39 million posted in the preceding year.

“Furthermore, the unaudited consolidated profit after taxation and non-controlling interests of eNoah for the financial year ended March 31, 2018, recorded approximately US$1.41 million, which was equivalent to approximately RM5.85 million.

“With the established business model of eNoah, we are confident the proposed acquisition will allow SDIT to gain a substantial stake in a profitable target,” Mohd Abdul Karim added.