Kronologi Asia gains shareholders' approval for RM45m Quantum Storage buy

KUALA LUMPUR: Enterprise data management firm Kronologi Asia Bhd, which received approval from its shareholders to acquire Quantum Storage (Hong Kong) Ltd for RM45 million, said the group is open to partnership that could add value to its business.
“We are open to partnership. We’ll assess any opportunity if it comes up. If the business makes sense for us, we will proceed,” Kronologi acting CEO and chief technology officer Philip Teo told reporters after its EGM today.
“But nothing there is mature enough to announce (now),” he said.
In addition, Teo noted that the group will also focus on the organic growth, which will be the key in the group’s expansion in the region.
Currently, the group’s enterprise data management business covers the Southeast Asian region, which includes Singapore, Malaysia, Indonesia, the Philippines, Thailand as well as India.
Kronologi recently announced its partnership with Singapore state investor Temasek Holdings’ member, namely Trusted Source Pte Ltd, to provide data backup services to the latter’s subsidiaries.
“It is a partnership that we see as a huge opportunity,” said Teo.
Asked on the Hong Kong-based Quantum Storage acquisition, which is expected to complete by the fourth quarter of this year, Teo said the group expects the purchase will contribute positively to its financial performance next year.
“In 2018, we will recognise full contribution from Quantum Hong Kong. So we do expect that to contribute positively. Going forward, we will focus on getting value from the acquisition,” he added.
In the third quarter ended Sept 30, 2017 Kronologi’s net profit grew 66.5% to RM2.5 million, from RM1.5 million in the same period last year, mainly due to the full consolidation of Quantum Storage (India) Pte Ltd (QSI), which was previously a 20%-held associate.
The stock closed 1.5 sen lower today to 99.5 sen with some 1.9 million shares changing hands.