March 23, 2017 -
IRIS Corporation Berhad has formed a corporate restructuring plan (CRP) aimed at delivering deliver sustainable, profitable sales growth and long-term value creation for shareholders.
The CRP was discussed with Felda Investment Corporation (FIC), which has a 21.33 percent share in IRIS, and the Felda Board at the request of its chairman, Tan Sri Shahrir Abdul Samad. The plan was positively received and endorsed by both FIC and Felda Board.
There are three key priorities detailed in the plan, starting with the refocusing of IRIS’ core business. Since 81 percent of IRIS’ revenue stems from Trusted Identification division, the CRP will refocus on IRIS’ strengths in offering its Trusted Identification solutions.
The company’s identification solutions includes ePassport, smart card, end-to-end integrated solutions provider, automated border control (ABC) solution, banking, GST tourist refund scheme and automated fare collection (AFC) solution.
IRIS said it is confident that the CRP will reinforce its core business and increase sales by establishing partnerships with new technology partners as well as sustaining technology excellence.
The company’s co-founders, Dato Tony Lee and Chas Yap, have also returned as IRIS technical advisors, where the two will “help develop and drive a technology roadmap to put IRIS at the forefront of innovative and game-changing technologies.”
Next, the CRP calls for IRIS to divest all non-core businesses including property development, education and waste to energy plant, enabling the company to refocus and to ensure that resources are used on its core business.
The third priority of the CRP is to raise additional funds through a holistic funding strategy focused on securing equity funding, short term debt funding, divesting non-essential assets and accounts receivable factoring.
The strategy will involve engagements with multiple parties including soon to be appointed merchant banker Malaysian Industrial Development Finance Berhad (MIDF), key institutions, strategic investors, lenders and creditors of IRIS.
The company also announced the private placement exercise of up to 10 percent of the issued and paid-up share capital of the company to potential strategic investors.
“Together with other ongoing initiatives to contain cost, strengthen IRIS corporate governance framework, revitalize the senior management succession plan and ramp up debt-collection, I am confident this CRP will better position IRIS for further growth globally and domestically,” said Tan Sri Razali, IRIS chairman.