NetX Holdings buys equity interest in Mlabs System for RM7.2m

PETALING JAYA: NetX Holdings Bhd's (NetX) subsidiary First United Technology Ltd has acquired 8.43% equity interest in Mlabs System Bhd (Mlabs) for RM7.2 million cash.
NetX told the stock exchange last Friday, the proposed investment into Mlabs will allow the group to potentially collaborate with an established company to expand its revenue base and to acquire new IT technology.
The group added by leveraging on Mlabs' strong and growing presence in the Southeast Asia, specifically Thailand, it is able to tap on these leverages and provide synergy to the group.
NetX said the purchase was funded entirely from internally generated funds.
Moving forward, NetX said Mlabs will continue to focus its core business relating to trading and assembling of multimedia video conferencing systems and will undertake further development of its mobile application which complements its existing video conferencing software.
NetX said it is optimistic that the subscription will provide Mlabs' business a positive return in the near term.
NetX closed unchanged at 5.5 sen last Friday with some 14.14 million shares traded. It has a market capitalisation of RM68.8 million.