KUALA LUMPUR (Feb 17): ACE Market-listed education and human resources provider SMRT Holdings Bhd’s share price shot up by as much as 32% in early morning trading on Friday (Feb 17), settling at 31 sen at 10.20am. 

The counter was the most actively traded, with 45.09 million shares changing hands. 

Earlier this month, SMRT proposed to acquire 1.8 million shares, or the remaining 36% stake not already owned by the group in N'Osairis Technology Solutions Sdn Bhd (NTS) from Permata Kirana Sdn Bhd for RM72 million cash.  

This is part of the group's strategy to streamline its operations, and purely focus on its technology business, said SMRT. NTS, an information technology (IT) managed service provider, is currently a 64%-owned subsidiary of SMRT. NTS is a profitable company, posting a net profit of RM20.11 million on a revenue of RM51.1 million for the financial year ended Dec 31, 2021.

As part of its plan to become a pure play IT solutions company, SMRT said it is also proposing to dispose of its entire stake in SMR Education Sdn Bhd to Special Flagship Holdings Sdn Bhd for RM49.46 million cash, allowing the group to exit its education business that has not been a strong contributor to the group's financials.  

SMR Education is principally involved in investment holdings, where it currently holds 42.08% of Minda Global Bhd (MGB). As such, post proposed disposal, SMRT will cease to hold 100% equity interest in SMR Education and 42.08% in MGB.