REXIT ... Apr10

Rexit Bhd is believed to be on the verge of securing the Employees Provident Fund (EPF) agreement on the development and supply of a software that enables EPF contributors to draw on their savings for medical expenses.

Sources say the deal would be positive for Rexit’s top-line growth but the project’s estimated initial development cost of around RM12 million would put a dent on its bottom line in the coming quarters.

Rexit is also believed to be the only company appointed by EPF to work with the Federation of Investment Managers of Malaysia (FIMM) on developing a software that facilitates online purchase of trust units from EPF contributors’ accounts.

This came three months after the exit December 2009 of Marubeni Corp as Rexit’s substantial shareholder, which dented the international ambitions of the information technology solutions company. In December 2009, Marubeni disposed of some 18.93 million shares or its entire 10% stake in Rexit, in a move that raised concern about the company’s international expansion plan.

Rexit focuses mainly on providing software applications for the insurance industry.

On the local front, one of Rexit’s main income earners is its “e-insurans” gateway for insurance companies and the road transport department for car insurance renewal.

Rexit Venture Sdn Bhd is the largest shareholder in Rexit with a 37.69% stake.

Other major shareholders include T Rowe Price International with 7.71% and HSBC Holdings plc with 5.63%.