KUALA LUMPUR (April 27): LGMS Bhd has formed a strategic partnership with Mitsui & Co Ltd, resulting in the Japanese conglomerate taking up a 25% stake in the ACE Market-listed cybersecurity firm.

Mitsui emerged as a substantial shareholder on Wednesday (April 26), after it acquired 23% of LGMS from its co-founders — executive chairman Fong Choong Fook and his wife Goh Soon Sei.

LGMS’ filings with Bursa Malaysia on Thursday showed that the duo divested 104.88 million shares pursuant to a sale and purchase agreement with Mitsui for strategic partnership purposes.

Prices of the transactions were not disclosed.

According to Bloomberg data, LGMS saw 104.88 million shares traded off market in two tranches, one being 80.74 million shares and the other 24.14 million shares, with both transacted at RM1.10 apiece, a 1.8% discount to the group’s RM1.12 closing price on Wednesday.

LGMS said the partnership is to broaden and deepen its footprint throughout the Asia-Pacific region.

“The partnership will leverage the expertise of LGMS' highly skilled cybersecurity professionals, and Mitsui's extensive global network and experience in the cybersecurity industry,” the statement read.

Mitsui general manager of digital solution business division John Kenichi Kogiku said LGMS’ cybersecurity talent is capable of providing advanced penetration testing and other security services to various enterprises, including major businesses and government bodies.

“Companies need skilled cybersecurity professionals to protect their information systems and assets from cyberattacks and other threats, but the global shortage of qualified personnel has become a societal issue given the rapid increase in cybercrime,” he said.

“Mitsui's emergence as a substantial shareholder of LGMS would result in a partnership that provides ‘world-class’ levels of professional cybersecurity services to the entire region,” said Fong, adding that LGMS would continue investing in advanced cybersecurity research and development, talent building and intellectual property creation to meet growth targets.

Both parties said the immediate initiatives in the pipeline following this partnership include rolling out LGMS’ e-payment compliance solution for e-commerce merchants throughout the region.

At noon market break, shares in LGMS were trading nine sen or 8% higher at RM1.21, giving it a market capitalisation of RM551.76 million.

The stock was the third largest gainer across all Bursa securities, with a trading volume of 8.57 million shares.