Malaysia’s electronic government services provider MyEG is in talks to buy a controlling stake in food review website Eat Drink KL.
According to the report in The Edge on Wednesday, MyEG is close to sealing a deal with the website owned by former Associated Press journalist Sean Yoong. The terms of the deal were not disclosed.
Malaysian stock exchange-listed MyEG has not formally made any announcement on the deal or issued a denial.
After the acquisition, Eat Drink KL may become a part of MyEG-subsidiary MyEG Capital Sdn Bhd that owns online advertisement platform MyEG Ad Networks, Car X Services, Picasso Media Sdn Bhd and online television provider Hurr TV Sdn Bhd, the report said.
Traditionally, MyEG is engaged in the development and implementation of e-government services and the provision of solutions for Malaysian e-government initiatives like vehicle road tax and drivers’ licence renewal and foreign workers’ permit renewal.
However, the organisation has taken to a diversification path in the past few years. In February this year, its subsidiary Hurr Tv Sdn Bhd formed another subsidiary MUCA Wellness Sdn Bhd which is expected to engage in e-commerce activities.
The organisation has always been seen as one dependant on government contracts but now MyEG is trying to reshape that image. It said in an interview to a local daily earlier this year that commercial solutions and services form 70 per cent of its business “thus no longer rendering it just a concession for various e-government applications”.
Nevertheless, this year it bagged a government contract for online renewal of the temporary employment passes for foreign workers for the Immigration department. The fiver-year project is estimated at MYR553.85 million.