Nexgram looking for new partner for Angkasa Icon City project in Cyberjaya [The Sun – 28 Dec 2017]

KUALA LUMPUR: Nexgram Holdings Bhd is on the lookout for a new partner to undertake the development of Angkasa Icon City in Cyberjaya, and appears to be leaning towards companies from China that already have a presence in Malaysia.

“If they (Chinese companies) have a company incorporated in Malaysia, we are open to discussing with them. We give them priority but we want them to be based locally because the authorities were not comfortable with us joining venture with an offshore company,” Nexgram’s newly appointed executive chairman Datuk Donald Lim Siang Chai (pix) told reporters after Nexgram’s AGM here today.

Meanwhile, the corporate offices portion of the mixed development project has been changed into that for a hotel, the design of which is in progress.

Nexgram via wholly owned subsidiary Nexgram Land Sdn Bhd had entered into a joint development agreement (JDA) in May with Seychelles Island-incorporated China Asian Capital Holding Ltd (CACH) to carry out the RM1.15 billion project.

However, the two parties decided to pull the plug on the partnership following the lapse of the JDA on Aug 18, 2017 and on the basis of inability to agree on commercial terms for the project.

Nexgram is looking to turn around in financial year 2019 (FY19), driven by its information and communications technology (ICT) segment, especially via its IT securities services subsidiary Sensorlink Sdn Bhd. The ICT segment is expected to contribute to 70% of its revenue next year.

The group, which recorded a net loss of RM16.19 million in the financial year ended July 31, 2017, however, expects a continued lacklustre performance in FY18 given the less than favourable global economic conditions as well as cash flow issues.

On the property front, in view of the temporary ban on luxury residential and commercial developments by the government, Nexgram is shifting its focus towards the affordable housing segment, whereby it is looking to develop units priced from RM300,000 to RM500,000 in the Klang Valley and other major urban areas.

“We are discussing with a few companies and landowners. We have yet to conclude any decision. We hope by next year, we are able to firm up some of the joint ventures for affordable homes projects,” Lim said.

Meanwhile, commenting on Nexgram’s second attempt to remove three directors of R&A Telecommunication Group Bhd, Lim explained that it was due to the “secretive” nature of the R&A board, which has not been keeping shareholders informed of He claimed that R&A has not called for an AGM this year. The last AGM was held in June 2016.

“They have to call for an AGM and let shareholders ask questions, so I believe they are very secretive and that is not the way to run a listed company. We want to find right people to be there.”

Nexgram holds an equity interest of 6.83% in R&A.

On Bursa Malaysia today, Nexgram closed unchanged at 3.5 sen on volume of 402,500 shares.