KUALA LUMPUR (July 7): Theta Edge Bhd (KL:THETA) said its joint venture with Nova MSC Bhd (KL:NOVAMSC) to provide e-government and technology solutions has been terminated after the venture failed to commence any material business operations and achieve its intended commercial objectives.
The two companies formed the JV in September 2023 and incorporated Digital EG Sdn Bhd two months later to provide e-government technology solutions, including system integration and consultancy services. In November 2024, Theta and Nova said they planned to deploy Digital EG's solutions for the Ampang Jaya Municipal Council Smart City Project while pursuing similar opportunities with other federal and state agencies.
“Nova and Theta have mutually agreed to terminate the JV agreement following a strategic review, " Theta said in a filing with Bursa Malaysia on Tuesday. "The joint venture has not commenced any material business operations and the intended commercial objectives have not materialised."
In a separate filing, Nova said the parties will discuss the future of Digital EG, including the possibility of winding up the company, subject to mutual agreement.
Nova added that the termination is not expected to have a material impact on its earnings, net assets or gearing for the financial year ending June 30, 2026.
Theta shares closed one sen or 1.85% lower at 53 sen on Tuesday, valuing the company at RM62.52 million. Nova shares were unchanged at 6.5 sen, giving it a market capitalisation of RM129.96 million.