KUALA LUMPUR (Jan 6): SMTrack Bhd said it is in early stages of negotiation with a government-linked company (GLC) and that no agreement had been reached at this juncture, in response to a news report that a GLC is eyeing a 10% stake in the radio-frequency identification (RFID) company.

"In the event any decision or agreement is made in relation thereto, the Board will make the necessary announcement in compliance with the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad accordingly," SMTrack said in a bourse filing.

It was responding to a news report by The New Straits Times, which wrote that the GLC's interest was expressed in a letter addressed to SMTrack after a meeting between the representatives of the two parties.

It wrote that the GLC was set up more than half a century ago as a wholly-owned government company, and that some of its investment principles are to invest in assets that bring high economic returns. It also wrote that when entering into joint ventures, the GLC is to be the majority shareholder with controlling interest over operations.

The company also brushed off rumours that a prominent "Datuk Seri" will emerge as its substantial shareholder.

“There are also rumours that a prominent 'Datuk Seri' will become another substantial shareholder of the company”, and the board wishes to clarify that the company is not aware or been notified of any prominent 'Datuk Seri' who will become a substantial shareholder of SMTrack," its filing read.

Meanwhile, tycoon Tan Sri Lee Kim Yew recently joined SMTrack's substantial shareholders' list after acquiring 28.5 million shares on Dec 29, 2021, which is equivalent to a 5.051% stake. The Country Heights Holdings Bhd executive chairman acquired the stake in the open market.

SMTrack provides RFID solutions for various applications. The company is engaged in the distribution, research, design and deployment of radio  RFID tags. It also provides online track and trace solutions and platforms using its RFID technology, coupled with a tracking engine called SMTrack.

Shares in SMTrack settled two sen or 7.69% higher at 28 sen on Thursday, valuing the company at RM158 million.

The stock has been climbing since mid-December, when it was trading at 9.5 sen on Dec 17. The stock has jumped 18.5 sen or about 195% since.