Omesti shareholders approve Microlink share distribution

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KUALA LUMPUR (Aug 19): IT specialist Omesti Bhd received shareholders' approval to distribute up to 5.98 million shares in its subsidiary Microlink Solutions Bhd to Omesti shareholders.

Speaking to reporters after Omesti's (fundamental: 0.95; valuation: 0.9) extraordinary general meeting today, Omesti chief financial officer Richard Voon said the distribution was considered a dividend payout to shareholders.

Voon said the move would dilute Omesti's stake in IT company Microlink (fundamental: 2.1; valuation: 0.6) to 75% from the current 79%.

Asked if Omesti plans to transfer Microlink from Bursa Malaysia's ACE Market to the Main Market, Voon said "the group does have intention" to do so, but declined to provide a specific time line for the transfer.

"We do have intention (to transfer to Main Market), considering that Microlink has fulfilled the requisite profitability," Voon said.

At 12.30pm, Omesti shares fell one sen or 2% to settle at 53.5 sen for a market capitalisation of RM207.58 million.

The stock saw thin trades of 81,800 shares.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)