Malaysian identity solutions firm IRIS Corporation Berhad (IRIS) has formulated a corporate restructuring plan.
In a statement, the company said the plan aims to deliver sustainable, profitable sales growth and long-term value creation for shareholders.
The plan was discussed with Felda Investment Corporation (FIC), which is holding 21.33% shares in IRIS, and the Felda Board at the request of its chairman, Tan Sri Shahrir Abdul Samad. It was positively received and endorsed by both FIC and Felda Board.
The company noted that it plans to to refocus on core business: Since 81% of IRIS’ revenue is presently from Trusted Identification division, the CRP will refocus on the core of what has made IRIS the technology company it is today and what IRIS is best at; the Trusted Identification solutions which 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 is confident that the CRP will strengthen its core business and increase sales by forging partnerships with new technology partners whilst sustaining technology superiority", the company wrote in its statement. "There are exciting opportunities for growth in this sector because Acuity Market Intelligence estimated the global market revenues for Airport ABC eGates and kiosks are expected to reach USD1 billion annually by 2020 while the global ePassport market revenue is expected to reach more than USD5 billion annually by 2020".
IRIS is also announce the return of its co-founders, Dato Tony Lee and Chas Yap as IRIS Technical Advisors. The two have made this company their life’s work, remain valuable assets of IRIS and will help develop and drive a technology roadmap to put IRIS at the forefront of innovative and game-changing technologies.
Secondly, it aims to divest non-core businesses: To enable IRIS to refocus and to ensure that resources are utilized on its core business, the CRP will focus efforts on divesting IRIS’ non-core businesses including property development, education and waste to energy plant.
Finally, to raise additional funds, as part of the CRP, a holistic funding strategy will be implemented focusing on securing equity funding, short term debt funding, divesting non-essential assets and accounts receivable factoring. This will involve engagements with various parties including soon to be appointed merchant banker Malaysian Industrial Development Finance Berhad (MIDF), key institutions, strategic investors, lenders and creditors of IRIS to tap additional funds to grow the company. IRIS also announced the Private Placement exercise of up to 10% 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.