Government arm eyeing 10% stake in SMTrack?

A Government Link Company or GLC is eyeing a 10% stake in SMTrack Bhd (Stock code: 0169), with the GLC’s interest expressed in a letter which was addressed to SMTrack after meeting between the representatives of the two parties.

The investment proposal in SMTrack is currently being assessed under the GLC’s investment policy and guidelines say a source.

It is interesting to note that SMTrack’s share price has been gaining traction with upward momentum and the volume has been sustainable. Coincidentally, SMTrack is traded on the ACE Market of Malaysia, a market designed for companies with growth prospects.

This GLC was set up more than half a century ago as a wholly-owned government company. Some of its investment principles were to enter undertakings that would bring high economic returns to the GLC. When entering into joint ventures, the GLC is to be the majority stockholder with controlling interest over operations.

SMTrack’s recent positive stock momentum has also attracted various parties to take up a substantial stake in the said company.

Just last Thursday, Tan Sri Lee Kim Tiong @ Lee Kim Yew was announced as a substantial shareholder in SMTrack after acquiring more than a 5% stake in the open market.

There are also rumours saying that another prominent Datuk Seri will become another substantial shareholder of this company.