KUALA LUMPUR (June 16): ConnectCounty Holdings Bhd said today it is in negotiations with a relevant party on the possible reverse takeover exercise involving S5 Systems Sdn Bhd.

Cable and wire manufacturer ConnectCounty said in a statement to Bursa Malaysia today that it has not signed any agreement on the matter.

"However, the company shall make the necessary announcement(s) as appropriate when there are further developments on this matter.

"The board of directors is cognisant of the need for proper dissemination of information to the public and will release the relevant announcement on any material issue in a timely manner as required by the ACE Market Listing Requirements of Bursa Malaysia," ConnectCounty said.

ConnectCounty's statement today was in response to an article appearing on the klse.i3investor.com website on Saturday.

Today, ConnectCounty said the article indicated that "... ConnectCounty would be next vehicle for the backdoor listing (reverse takeover) by S5 Systems..."

S5 Systems' website indicates that the company is a global integrated security solutions provider to governments and enterprises.

"We provide the expertise and solutions to meet national challenges in homeland security, defence, and intelligence; areas of vital importance to national interests," S5 Systems said.

S5 Systems and electronic government services specialist My EG Services Bhd (MyEG Services) were in the news recently.

Last Wednesday, MyEG Services said its wholly-owned subsidiary My EG Capital Sdn Bhd (MyEG Capital), Merrington Assets Ltd and MyEG Services had signed a share sale agreement under which MyEG Capital will buy 118 million shares, representing a 10% stake, in S5 Holdings Inc for RM90 million.

MyEG Services said S5 Holdings has two subsidiaries comprising S5 Systems and S5 Code Solutions Kazakhstan LLP.

MyEG Services said S5 Systems is involved in the "provision of national security solutions which involves the provision of security technology intellectual property as well as the development and customisation of solutions and systems, consultancy and support in all related information technology and security industries".

"[S5 Code Solutions is] in the process of being voluntary wound up by its shareholder," MyEG Services said.

At Bursa's 12:30pm break today, ConnectCounty's share price settled 1.5 sen or 4.55% higher at 34.5 sen, valuing the group at RM128.41 million.

ConnectCounty saw some 38 million shares traded.