KUALA LUMPUR: A government-linked company (GLC) is eyeing a 10 per cent stake in SMTrack Bhd, whose share price has been gaining traction with sustainable volume.
SMTrack is traded on Bursa Malaysia's ACE Market, a market designed for companies with growth prospects.
The GLC's interest was expressed in a letter which was addressed to SMTrack after a meeting between the representatives of the two parties.
It is learnt that the investment proposal in SMTrack was being assessed under the GLC's investment policy and guidelines.
The GLC was set up more than half a century ago as a wholly-owned government company.
Some of its investment principles are to invest in assets that bring high economic returns to the GLC and when entering into joint ventures, the GLC is to be the majority shareholder with controlling interest over operations.
SMTrack shares have gained more than 60 per cent over the past five days and were traded at 25 sen at midday today.
Its recent positive stock momentum has attracted various parties to take up substantial stakes in SMTrack.
Just last Thursday, Tan Sri Lee Kim Tiong @ Lee Kim Yew was announced as a substantial shareholder in SMTrack after acquiring more than five per cent stake in the open market.
There is also rumours that a prominent "Datuk Seri" will become another substantial shareholder of the company.
SMTrack provides radio-frequency identification (RFID) solutions for various applications.
The company is engaged in the distribution, research, design and deployment of radio frequency identity tag.
It provides online track and trace solutions and platforms using its RFID technology coupled with a tracking engine called SMTrack.
Its solutions and services include secure trade, food and secured traceability, Near Field Communication (NFC), global positioning system (GPS) fleet management and RFID anti-counterfeit solution.
Its NFC solutions consist of three modules.
They are Smartag AirPay Server, which is a payment gateway linked to Celco e-payment system, Smartag AirBill Server, which is a billing server that tracks customer payment and transaction logs, and provides merchant portal login to view those payments, and Smartag AirPOS, which is a point-of-sales software.