News

INTRODUCTION

The Board of Directors of APM wishes to inform that Auto Parts Holdings Sdn Bhd (Company No. 143315-V)(“APH”), a wholly-owned subsidiary of the Company, has on 28 December 2016 subscribed for 52% of the total issued and paid-up share capital in Omnimatics Sdn Bhd (Company No. 1146451-U)(“Omnimatics”) pursuant to the terms of a Subscription Agreement entered into on 2 December 2016 with Raj Kissu A/L Rajandran (“RAJ”), Watchtower & Friends Sdn Bhd (Company No. 9161116-X)(“Watchtower”) and Omnimatics , resulting in Omnimatics becoming a subsidiary of APH. 

APH paid a total investment cost of RM625,000, the details of which are as follows:  

(a)    RM325,000 being the subscription price paid by APH for the subscription of 325,000 ordinary shares of RM1.00 each; and 

(b)    RM325,000 out of which RM240,800 was paid by APH on behalf of RAJ for the subscription of 240,800 ordinary shares of RM1.00 each and the balance of which was paid as consideration to RAJ for his entering into a service agreement with Omnimatics to act as Head of Omnimatics for a period of three (3) years. 

The subscription by Watchtower of 49,200 ordinary shares of RM1.00 each, was capitalized from the balance of the grant of RM50,000 which was provided by Watchtower as seed capital to assist Omnimatics in the development of CARdio™. 

Upon completion of the subscription by the parties to the Subscription Agreement, the shareholdings of Omnimatics are as follows:

INFORMATION ON OMNIMATICS SDN BHD

Omnimatics was incorporated in Malaysia as a private limited company under the Companies Act 1965 (“Act”) on 29 May 2015.  The authorized share capital of Omnimatics is RM1,000,000.00 comprising 1,000,000 ordinary shares of RM1.00 each. The issued and paid-up share capital of Omnimatics is RM625,000.00 comprising 625,000 ordinary shares of RM1.00 each.  

Omnimatics was established by RAJ as a tech startup to develop its flagship product, CARdio™ - an Internet of Things (“IoT”) telematics platform that connects cars to the cloud, with the intent of making day-to-day driving a better and safer experience through information awareness. The platform comprises both purpose-specific hardware that transmits vehicular information to the cloud and a software platform that generates actionable data for commercialization. 

The CARdio™ hardware device, which touts easy Plug n Play installation and compatibility for most cars manufactured after 2008, will allow the users to keep track of their car's location, trip logs and fuel economy, driver behavior, maintenance scheduling, performance analytics and various other metrics, as well as receive alerts under certain conditions such as over speeding or possible collision, all from the convenience of their smartphone or browser.

The directors of Omnimatics are Mr. Low Seng Chee, Dato’ Tan Eng Hwa, Mr. Nicholas Tan Chye Seng, RAJ and Ms. Raasi Ureeeya A/P Rajandran.

RATIONALE FOR THE INVESTMENT

With the emergence of the IoT applications embedded in automobiles, both automobile industry insiders and everyday drivers would soon see an increase in connectivity, productivity and ability to perform diagnostics while on the move.

APM views this investment of IoT as an additional business segment for the Group. The investment is in tandem with the revolutionary introduction of IoT applications in the automobile industry. This IoT business can be expanded regionally into the ASEAN region where APM has its presence.

EFFECTS OF THE INVESTMENT

The investment does not have any effect on the issued and paid-up share capital of the Company or the shareholdings of the Company’s substantial shareholders. The investment is not expected to have any material financial impact on the net assets, gearing and earnings of APM Group for the financial year ending 31 December 2016.
    
APPROVALS REQUIRED

The investment is not subject to the approval of the shareholders of APM or any other relevant authorities.

DIRECTORS AND MAJOR SHAREHOLDERS INTERESTS

None of the Directors or major shareholders of APM or persons connected with them, has any interest, direct or indirect, in the investment.

This announcement is dated 28 December 2016.