Prestariang Berhad (Prestariang) and Serba Dinamik Group Berhad (SDGB) have today entered a conditional Share Sale Agreement (SSA) for SDGB to acquire the entire business of University Malaysia of Computer Science & Engineering (UNIMY), which was owned and operated by Prestariang Education Sdn Bhd (PESB) from Prestariang for RM2.5 million.
The signing ceremony was held at the UNIMY campus in Cyberjaya. Prestariang was represented by its President and Group Chief Executive Officer, Dr Abu Hasan Ismail and the Chief Operating Officer, Baldesh Singh. On behalf of SDGB were the Group Managing Director and CEO, Dato’ Dr Ir Ts Mohd Abdul Karim Abdullah, and the Vice President of Education & Training, Dr Ts Zulkarnain Kedah. The Chairman of the UNIMY’s Board of Governors, Professor Emeritus Dr Hassan Said also present to witness the event.
Prestariang mentioned that the disposal is part of its rationalisation plan to improve its cash flow and working capital, while resetting the Group’s business to return to profitability. Prestariang has earlier announced a proposed private placement of up to 10% of its issued shares to raise up to RM19.3 million. Bursa Malaysia has on 20 Feb 2020 approved the listing of and quotation of up to 48,230,100 Placement Shares to be issued pursuant to the proposed private placement.
“We are very proud to have so far produced 146 graduates from UNIMY, all of whom were much sought after by the industry. As much as we are passionate about the education business and UNIMY does produce high-quality ICT graduates that fit the demand of the industry, we need to prioritise our limited resources to stay nimble in these trying times for Prestariang. We have embarked on a rationalisation plan that includes monetising assets that are non-cash generating, so that we can reallocate the resources to strengthen our profitable business” said Dr Abu Hasan Ismail, President and Group Chief Executive Officer of Prestariang.
“Coupled with the private placement of shares, this divestment will put the group on a stronger financial footing.”
The acquisition of a tertiary educational will allow SDGB to accelerate the expansion of its education and training business, which leverages on the oil and gas services and engineering firm’s industrial experience to design training curriculum specifically for the industry.
The unit already partnered with The City & Guilds Institute of London to offer education certificates here. UNIMY’s ICT focus will also complement SDGB’s IT Solutions business, which develops software packages for industrial applications.
“Highly specialised skilled force is a very important element for the development of our industries in oil and gas and power sector,” said Serba Dinamik Group Managing Director and CEO Dato’ Dr Ir Ts Mohd Abdul Karim Abdullah.
“With a university within the group, it will give us a tremendous edge in research and development and also tap the huge potential at the global market that we are currently operating. It bodes well for Serba Dinamik’s long-term development as we expand our project portfolio globally,” he said.
PESB, incorporated in Malaysia in 2005 as a wholly-owned subsidiary of Prestariang, is mainly involved in providing personalised information and communication technology education in a diverse and vibrant community. UNIMY began operations in 2013 and offers various programmes from foundation, diploma, degree and post degree; Masters and PHD with a focus in ICT related fields. Its total student enrolment for the academic year 2019 averaged about 500 students.
Barring unforeseen circumstances, the proposed disposal of PESB to Serba Dinamik is estimated to be completed by the end of second quarter this calendar year.