KUALA LUMPUR (Nov 1): Information technology (IT) software and platform provider ARB Bhd said its indirect wholly owned unit ARB Cell Sdn Bhd has entered into a shareholder agreement with BFI Asia Holdings Sdn Bhd in relation to BFI Asia's subscription of a 49% stake in ARB Cloud Cosec Sdn Bhd, also an indirect wholly owned subsidiary of ARB.

Upon completion of the subscription, ARB Cell and BFI Asia's equity interests in ARB Cloud Cosec will be 51:49.

BFI Asia is principally involved in business management consultancy services, while ARB Cell is engaged in the business of digital technology inclusive of big data analysis, IT, Internet of Things and cloud technology.

According to the statement, ARB Cloud Cosec, provider of cloud company secretary platforms and services that fully automate the company secretary services, intends to also enter into a business arrangement with Eurogain Secretarial Services Sdn Bhd — a company which has the same shareholders with BFI Asia — the first certified secretarial and professional service hub franchise operator, which has been honoured by the Malaysia Book of Records. Eurogain shall promote and market the system to its franchisees.

ARB Cloud Cosec aims to achieve a revenue of RM100 million and to secure more than 100,000 users to use the system over the next 24 months.

ARB's executive director Datuk Seri Larry Liew Kok Leong said the shareholder agreement will strategically position the group better to enhance its system with new features and designs.

"To further expand our business footprint, we aim to promote and market this system in Malaysia and Asean countries together with our partner, BFI Asia," he said.

He said the potential growth prospect for ARB Cloud Cosec is huge, given that the pandemic has led to a shift towards remote working and the acceleration of digital transformation in the business landscape. Its target clients are company secretary firms, public listed companies, and small and medium enterprises.

"With BFI Asia on board with us, we could leverage on the business network, know-how, and other expertise of BFI Asia's shareholders to push forward the expansion as well as to achieve a target revenue of RM100 million," Liew explained.

Shares in ARB settled unchanged at 11.5 sen on Tuesday (Nov 1), with a market value of RM140 million.