TMS’ major shareholder to inject projects

by **Cals** Sat 22 Aug 2015, 01:40

TMS’ major shareholder to inject projects

KUALA LUMPUR: The Media Shoppe Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)’s (TMS) single largest shareholder, Master Knowledge Sdn Bhd, intends to inject property projects into the IT-based company to strengthen its earnings.
TMS, which has been mostly in the red over the past few years, has decided to enter the property sector to diversify its income stream. To kick-start this, it acquired Exonion Sdn Bhd, a dormant property development firm for RM2 on Wednesday. Both Datuk Low Liong Kian and Tan Tsu Pin, who hold a 23.21% stake in TMS via Master Knowledge, joined the company’s board on Monday. Low and Tan have extensive working experience in the construction industry.
A company spokesperson told the digitaledge DAILY yesterday that the company would undertake its maiden mixed development comprising office lots and condominiums in Kemaman, Terengganu. “We are in the midst of finalising our agreement with bidders. We hope to award the contracts to bidders as early as next month, so that we can embark on the project as soon as possible,” the spokesperson said.
She said the project, which is slated to be completed in the next two to three years, may have a gross development value of RM100 million, but is subject to the final development plan. “The project will fall under the affordable range,” she said.
The spokesperson also revealed that TMS is eyeing land banks in Johor and Terengganu, which are familiar to its two new shareholders. Despite the business diversification, she stressed that the information IT business would still remain as the main income driver of the company.
“Several contracts are up for renewal. Our subsidiaries are now negotiating them (the renewals) with the clients.
“We are optimistic that we can secure the contracts, given our experience and track record,” she added.

This article first appeared in digitaledge Daily, on August 21, 2015.