KUALA LUMPUR (March 11): MyEG Services Bhd has acquired a 14.4% stake in HeiTech Padu Bhd for RM31.25 million as part of a strategic investment.

In a bourse filing on Monday, the e-services provider said it acquired the stake of 14.57 million shares via its unit MyEG Capital Sdn Bhd through the open market and direct business transactions.

The company said it bought 5.16 million shares from the open market on March 7 for RM11 million cash or RM2.134 sen per HeiTech share.

It also acquired 9.42 million shares via direct business transactions for RM20.25 million or RM2.15 per share on average.

On the rationale for the acquisition, MyEG said the investment will allow the company to explore potential collaborations with HeiTech to create synergies by leveraging the respective expertise and experience of both parties as established e-government service providers.

Shares of HeiTech jumped 54 sen or 22% on Monday to close at a record high of RM2.99, giving the group a market capitalisation of RM302.66 million.

The counter has seen a steep climb over the last 30 days, more than doubling from RM1.22 on Feb 9.

HeiTech gets one-year extension for provision of immigration system maintenance services

Meanwhile, HeiTech announced that it has secured a contract extension worth RM13.11 million for the provision of maintenance services to the Malaysian Immigration System (MyIMMs).

The contract extension is for a one-year period starting from Feb 18, and any further renewal or extension will be at the discretion of the government.

HeiTech, a system integration and application development solutions provider, first secured the contract in March 2021. Worth RM33.92 million, the contract was for a three-year period until Feb 17, 2024.

The extension came amid the government’s selection process for the development of the National Integrated Immigration System (NIISe) to replace MyIMMs, which Home Minister Datuk Seri Saifuddin Nasution Ismail reportedly said was outdated and no longer capable of meeting future immigration needs.

The Edge recently reported that HeiTech is among three companies shortlisted by the government to develop the NIISe project, which is understood to be worth over RM1 billion.