M&A Securities Sdn Bhd, on behalf of the Board of Directors of Omesti wishes to announce that the Company had on 19 January 2022 entered into a Heads of Agreement with Man Yau Holdings Berhad (“MYHB”), a wholly-owned subsidiary of Omesti, and Microlink Solutions Berhad (“Microlink”), wherein Omesti and MYHB on the one hand are desirous of undertaking the transfer of certain information technology projects to Microlink on the other hand, which will comprise and involve the following:

1. the proposed sale and transfer by Omesti of its rights and interests under the TMBSSP contracts in respect of a business support system project for Telekom Malaysia Berhad (“TMBSSP”), to Microlink (“Proposed Transfer of TMBSSP”);
2. the proposed sale and transfer by Omesti of 250,000 ordinary shares in Formis Research & Development Sdn Bhd, representing 100% of its equity interest, which is carrying out certain electronic services development and maintenance projects, to Microlink (“Proposed Share Sale of FRDSB”); and
3. the proposed sale and transfer by MYHB of 10,000 ordinary shares in Omesti Assist Sdn Bhd, representing 100% of its equity interest, which is also carrying out certain electronic services development and maintenance projects, to Microlink (“Proposed Share Sale of OASB”)

(collectively, the Proposals).

Hence, There would be several valuation exercises to be conducted (Proposed Transfer of TMBSSP, Proposed Share Sale of FRDSB, Proposed Share Sale of OASB). Microlink would likely to pay Omesti Bhd in terms of cash, shares issued or even both once the valuation exercises been conducted. 

With the proposals (unlock value) which mentioned above, Omesti’s share price most likely will perform better as its company now operates well for reasons like better debt/corporate rating.

Review of operating activities

Huawei appoints Omesti Bhd as the system integration partner for its Business Support System. Omesti has also been authorised as a reseller of Huawei software, giving access to the technology giant’s extensive portfolio of cloud and Internet of Things solutions.

CRIF OMESTI Sdn Bhd (30:70 joint investment vehicle with CRIF of Italy), the credit reporting business of the Group has made steady progress during the period, with the launch of several new online data services. Licensed by the Ministry of Finance as a Credit Reporting Agency (CRA), one of only seven in Malaysia, CRIF OMESTI provides credit reports and business information services for financial institutions, corporations and SMEs. The business ventures likely attract added interest as it provides similar services like CTOS Digital Berhad (the market leader of credit reporting industry in the country)

Investments in subsidiary/ associate

Omesti holds 10.888% (2020: 12.7%) interest in Ho Hup. (worth 17.242 million ringgits)

Omesti holds 54.87% interest in Microlink. (worth 322.125 million ringgits)

So do you think Omesti is highly undervalued based on Omesti's market cap only RM216.35million.？