Kuala Lumpur, 6 August 2015 – Dagang NeXchange Berhad (“DNeX”) today received shareholders’ approval on its selective capital reduction and repayment exercise of Dagang Net Technologies Sdn Bhd, a 71.25 per cent subsidiary of DNeX. The resolution for the exercise was tabled during an Extraordinary General Meeting (“EGM”) held by the company in Kuala Lumpur earlier today.
The exercise will result in the reduction of shares in Dagang Net held by shareholders of Dagang Net other than DNeX namely Lembaga Tabung Haji, Bank Islam Malaysia Berhad, Juasa Holdings Sdn Bhd and Dato’ Sri Syed Hussien Abd Kadir, trustee for National Chamber of Commerce and Industry of Malaysia.
When completed, the exercise will make Dagang Net a wholly-owned subsidiary of DNeX thus increasing DNeX’s share of the future net profit to be generated by Dagang Net, which will ultimately contribute positively to the overall net profit of DNeX.
Dagang Net currently provides business-to-Government (“B2G”) e-commerce services for Trade Facilitation through a concession awarded by the Government of Malaysia. While the concession will expire on 24 September 2016, Dagang Net had earlier this year participated in the tender submission for the Appointment of National Single Window (“NSW”) Service Provider to design, develop, install, configure, test, commission, and provisioning of support and maintenance services for the Trade Facilitation Portal.
The Service Provider will be required to front the trade community and provide access to Trade Facilitation services via a portal offering core and value-added services to NSW users linking them to the authorities and trade support community. In addition, Dagang Net is also expanding on its services namely developing and maintaining systems and solutions for Trade Facilitation and enabling integration to the NSW.
“These plans form key components of DNeX’s continued efforts in providing end-to-end, comprehensive e-commerce services for Trade Facilitation particularly expanding on Business-to-Government (“B2G”) services to Business-to-Business (“B2B”) services,” said En Zainal Abidin Jalil, Group Managing Director of DNeX. Under the B2B segment, DNeX is offering e-commerce services that can help companies and organisations leverage on e-commerce for improved processes and operational efficiencies.