S5 Systems joins IIS bidding race
KUALA LUMPUR: The RM1.5 billion national Integrated Immigration System (IIS) contract is expected to be awarded in the third quarter, said sources.
Sources said 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.
S5 Systems was a market leader in security solutions with a strong track record, they added.
The IIS project is essentially a newer version of the RM3.5 billion Sistem Kawalan Imigresen Nasional.
According to the latest filings, S5 Systems’ total assets stood at RM82.7 million. It posted a net profit of RM68.3 million for the year ended June 30 last year on the back of RM116.8 million revenue.
It is learnt that S5 Systems is eyeing a backdoor listing via ConnectCounty Holdings Bhd as the fastest means to fund the IIS project if it were to win the contract, and secure more government jobs.
Attempts to contact S5 Systems and ConnectCounty for comments have been unsuccessful.
In a filing with Bursa Malaysia on June 16, ConnectCounty announced that it was in negotiations with a 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 in response to an article on an investors’ portal that ConnectCounty would be the next vehicle for a backdoor listing by S5 Systems.
Meanwhile, MyEG Services said it was taking a 10 per cent stake in S5 Holdings.
MyEG Services’ wholly-owned My E.G. Capital Sdn Bhd (MyEG Capital) entered into a share sale agreement with Merrington Assets Ltd earlier this month to buy a 10 per cent stake in S5 Holdings, or 118 million shares, for RM90 million.