PETALING JAYA: Dagang Nexchange Bhd’s(DNex) indirectly owned subsidiary Genaxis Group Sdn Bhd, will be setting up a joint venture company incorporated in Switzerland to venture into Artificial Intelligence related consultancy and advisory practices.
The group told the stock exchange, it had on November 16 entered into a joint venture (JV) and shareholders agreement with Agorai Pte Ltd and Dynaniaga Sdn Bhd, to regulate their relationship in a JV company to be incorporated by all three parties.
The JV company which will be set up in Switzerland, will be involved in consultancy and advisory practices, focused on artificial intelligence services and such other related businesses.
Potential clients for the company include those from financial services, healthcare, manufacturing, food and beverage, telecommunication and public sector among others.
Genaxis will hold the controlling stake with 50% equity interest, and be in charge of injecting operating capital to support the initial business launch of the company. Its equity participation will be funded through bank borrowings and internally sourced funds.
Agorai and Dynaniaga will each hold 45% and 5% stake respectively.
The JV will allow Genaxis to provide AI related consulting services in an increasingly growing market globally as well as to build a consultancy firm in such a field as a business differentiator.
DNex’s share price closed 5.41% lower to 35sen with 16.72 million shares done.