Tuesday 23 Jul 2024
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KUALA LUMPUR (May 24): Iris Corp Bhd’s contract to provide the National Integrated Immigration System (NIISe) to the government has been extended by 12 months.

In a Bursa Malaysia filing on Wednesday (May 24), the identity products and solutions provider said its wholly owned subsidiary Iris Information Technology Systems Sdn Bhd (IITS) on May 23 received a letter of contract extension from the Ministry of Home Affairs of Malaysia (KDN).

KDN agreed to extend the duration of the contract for a period of 12 months from Sept 1, 2025, to Aug 31, 2026.

“Following the extension of NIISe contract period, IITS is required to extend the validity period in respect of the performance bond for a period of 12 months until Aug 31, 2027,” it said.

The NIISE contract worth RM1.16 billion was awarded to IITS in January 2021, for a period of 54 months commencing from March 1, 2021 until Aug 31, 2025.

According to a Bernama report, Home Minister Datuk Seri Saifuddin Nasution Ismail said that the project has not achieved adequate progress as at March 2023.

Meanwhile, in February, Iris entered into a share sale agreement to sell 80% equity interest in IITS for RM70 million cash to Tass Tech Technologies Sdn Bhd, which is wholly owned by Tass Tech (M) Sdn Bhd (TTSB).

The deal is expected to be concluded in August.

Iris noted that the disposal would allow the group to unlock its value of investment in IITS and contribute positively to its cash flow, with proceeds from the sale to be used for working capital and any future business expansions.

Shares in Iris closed unchanged at 10.5 sen on Wednesday, valuing the group at RM327.03 million.

Edited ByLam Jian Wyn
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