Monday, July 2, 2012

Today's Pick (25/06/12/113/807) Merger offive Bumi ICT firms serves as test case


Merger offive Bumi ICT firms serves as test case

KUALA LUMPUR: Malaysia's information, technology and communications (ICT) sector is kickstarting merger and acquisition activities so that they are able to compete with the world's top ICT companies.

Malaysian Association of Bumiputera ICT Industry and Entrepreneurs president Ashran Ghazi said a test pilot initiative is under way to merge five Bumiputera ICT companies with the help of government-owned venture capital firm MalaysiaVenture Capital Management Bhd (Mavcap).

"We will see what happens after the merger takes place. If it is successful, we will carry out more merger activities which will also be open to non-Bumiputera ICT companies," Ashran told reporters here yesterday on the sidelines of the Bumiputera Technopreneur Dialogue with Prime Minister Datuk Seri Najib Razak.
Ashran, who is also the National Entrepreneurs Forum (NEF) president, said for starters, each company and Mavcap will set up an entity with each party having its own stake. Mavcap will pull out after two years after recouping its investments.


He said the initiative is necessary as currently there are too many ICT companies involved in the same activity such as creative content or software development.

Earlier, Najib witnessed a signing of a memorandum between NEF and Mavcap for a merger and acquisition programme that will help Bumiputera entrepreneurs.
Also present were MDeC chief executive officer Datuk Badlisham Ghazali, TM chairman Datuk Dr Halim Shafie and group chief executive officer Datuk Seri Zamzamzairani Mohd Isa.

Najib in his speech said in order for Malaysia to become a high-income nation, it must tap into the entrepreneurial and creative spirit of its youths.

The dialogue was organised by the Malaysian Association of Bumiputera ICT Industry and NEF.

Source : New Straits Times
Date : 22 June 2012
Today's Pick (25/06/12/113/807) 

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