K-One Group, a Malaysian technology solutions provider, aims to create a joint venture to operate a cloud computing firm in Vietnam.
According to the company’s statement,its wholly-owned subsidiary G-Asia Pacific (GAP), a market leader and one of the cloud pioneers in Malaysia, had signed a term sheet for the joint venture with Vietnet Distribution Joint Stock Company (Vietnet), the front-runner in the cybersecurity sector in Vietnam.
GAP is primarily engaged in the business of advanced cloud technology, which includes software development, information technology (IT) consulting, infrastructure as a service (IAAS), platform as a service (PAAS), and other professional services, such as cybersecurity in relation to cloud solutions.
On the other hand, Vietnet is the market leader in Vietnam for cybersecurity which collaborates with the top suppliers to enhance their products by providing pre- and post-sales services as well as qualified cybersecurity advisory services to its resellers, partners, and clients.
GAP will own 51% of the joint venture company while Vietnet would possess the remaining 49%. The joint venture company will contribute $300,000 as its initial capital investment. Vietnet will contribute $147,000 for its 49% of the shares, while GAP will contribute $153,000 for its 51%. The planned joint venture is in line with the current expansion of the K-One Group’s cloud business across ASEAN and Oceania
The group claims that Vietnam has one of the fastest growing cloud markets in ASEAN as a result of the country’s accelerating digital transformation. The worldwide cloud partners of GAP, like Amazon Web Services (AWS), Google, and Microsoft, also have sizable presences in Vietnam for excellent reasons.
Consequently, to capture its fair part of the rapidly expanding Vietnamese cloud industry, the KOne Group should go alongside these cloud giants. With each side owning substantial and almost equal ownership in the joint venture company, both parties would have an incentive to steer the growth of the joint venture company while making the most of each party’s unique expertise.
According to K-One Group, Vietnet will concentrate on expanding the business through their extensive network, while GAP will offer the technical assistance required to secure the business.
It further stated that time to market is crucial, and the suggested joint venture strategy is a good approach to quickly grasp commercial opportunities and market share in a high-growth and constantly evolving technological industry like the cloud, it claimed.
The planned joint venture, according to the company, will have a minimal effect on K-One Tech’s net assets and gearing for the fiscal year ending December 31, 2022, but is anticipated to have a beneficial impact on the K-One group’s earnings for the fiscal year ending December 31, 2023.
On or before November 30, 2022, the parties must sign the final agreements—the joint venture and shareholders’ agreements.
