KUALA LUMPUR: The RM1.5 billion National Integrated Immigration System (IIS) is expected to be awarded in the third quarter of this year, sources said.
Talks have it that S5 Holdings Inc's unit S5 Systems Sdn Bhd has joined the likes of Iris Corp Bhd, MyEG Services Bhd, Datasonic Group Bhd and HeiTech Padu Bhd as bidders for the contract.
S5 Systems had the track record and position as a market leader in the provision of national security solutions, said people with knowledge on the matter.
The ISS project is essentially the new version of what was previously called SKIN or Sistem Kawalan Imigresen Nasional, worth RM3.5 billion.
According to the latest filings, S5 Systems' total assets stand at RM82.7 million.
It's net profit for the year ended June 30, 2019 was RM68.3 million on the back of a revenue of RM116.8 million.
It is learned that S5 Systems is eyeing a backdoor listing via ConnectCounty Holdings Bhd as the fastest means to raise more funds to fully complete the ISS project should it get it, and to secure more jobs from the government.
At the time of writing, the New Straits Times' attempts to contact S5 Systems and ConnectCounty were unsuccessful.
In a filing with Bursa Malaysia on June 16, ConnectCounty informed that it was in negotiations with the relevant party pertaining to the possible reverse takeover involving S5 Systems.
"The company has not signed any agreement on the said matter. However, it shall make the necessary announcement when there are further developments on this matter," it said, when clarifying an article on an investors' portal.
It was quoted in the article that ConnectCounty would be the next vehicle for the backdoor listing by S5 Systems.
Meanwhile, MyEG Services said it was taking a 10 per cent stake in S5 Holdings.
MyEG Services's wholly-owned My E.G. Capital Sdn Bhd (MyEG Capital) had entered into a share sale agreement with Merrington Assets Ltd early this month to buy 118 million shares or 10 per cent of S5 Holdings for RM90 million.
The company told Bursa that the planned acquisition was based on S5 group's track record and future prospects as well as the potential synergistic benefits arising from the acquisition and the favourable outlook of the digitalisation of government services.