Orion ups stake in Sukaniaga to further invest into online loan application system

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KUALA LUMPUR (Dec 21): Orion IXL Bhd is raising its stake in Sukaniaga Sdn Bhd to 20% from 10% with an injection of RM10 million, to further invest into the Angkasa Az-Zahara project, an online end-to-end loan application system being developed for use by members of Angkatan Koperasi Kebangsaan Malaysia Bhd (Angkasa).

The move is also in line with the group's venture into the government-related sector, and to further align the interest of the group and Sukaniaga towards the successful development and implementation of the Angkasa project, Orion IXL said in a stock exchange filing. 

It is acquiring the additional 10% from THO Travel & Travels Sdn Bhd (THO Travel). The acquisition is expected to be completed in the first quarter of next year.

For perspective, Orion XL announced in October that its wholly-owned Ganda Integrasi Sdn Bhd (GISB) had signed a 15-year agreement with Sukaniaga Sdn Bhd to provide all services to be rendered by Sukaniaga to Angkasa under the project. 

The agreement is conditional upon a service level agreement between Sukaniaga and MyAngkasa Holdings Sdn Bhd for the project, under which Sukaniaga would earn a fee for the said service provision. GISB would then be entitled to 85% of the fees earned by Sukaniaga.

Shares price of Orion XL rose 0.5 sen or 4.76% to close at 11 sen, bringing it a market capitalisation of RM65.89 million.