Tabung Haji partners Arcadia to strengthen Tetha’s growth

KUALA LUMPUR: Tabung Haji has entered into a strategic partnership with Arcadia Acres Sdn Bhd to increase the value of its investment in Theta Edge Bhd.

Tabung Haji said Arcadia, which had a strong track record in the information technology (IT) industry, would acquire a 30.3 per cent stake in Theta.

This will make Arcadia the second largest shareholder of the company, which is mainly involved in IT systems integration and telecommunication engineering services.

Tabung Haji will continue to be the single largest shareholder of Theta with a 38.4 per cent stake.

The pilgrims’ fund said the partnership was expected to strengthen Theta’s financial performance and market position via a new business collaboration, revenue enhancement and a stronger footing in the IT industry.

“This will ultimately enhance the value of Tabung Haji’s investment, a win-win situation for both Tabung Haji and Theta,” it said in a statement.

Tabung Haji said following an independent business review, it was advised to seek a strategic partner and a restricted tender exercise was carried out in 2019.

Tabung Haji received interest from several parties and subsequently secured approvals for the transaction involving Arcadia at the end of last year.

Tabung Haji group managing director and chief executive officer Datuk Nik Mohd Hasyudeen Yusoff said the commercialisation of digital transformation ideas had always been the group’s focus and Theta was at the forefront in capitalising the effort.

Nik Mohd said the Covidd-19 pandemic had accelerated the process of digitalisation and Theta was well positioned to capture this opportunity with the expertise of Arcadia.

“Tabung Haji is excited about growing Theta into a global Bumiputera IT company in partnership with an entrepreneur like Arcadia.”

Arcadia is also a major shareholder of Dagang NeXchange Bhd, an IT and energy service provider.