KUALA LUMPUR: Credit reporting company CTOS Digital Bhd is buying a 4.6% stake in rating agency RAM Holdings Bhd from CIMB Bank Bhd for RM10.05mil.
In a filing with Bursa Malaysia on Thursday it had entered into a share purchase agreement with CIMB to buy the stake, comprising 462,500 shares.
This is the first acquisition for CTOS Digital after its listing on July 19. The flotation exercise drew very strong interest from institutions and investors.
CTOS Digital group chief executive officer Dennis Martin said: “RAM is the market leader in bond rating industry in Malaysia. They also offer a range of solutions ranging from economic and debt market research, data & analytics and sustainability services.
“We believe there are strong synergies in both product offerings and customer base between both companies which we will look to realise on moving forward.”
CTOS Digital said the acquisition is not subject to approvals of its shareholders or other relevant regulatory authorities. The exercise is expected to be completed on the same day as the agreement.
CTOS Digital is the holding company of CTOS Data Systems Sdn Bhd, the leading credit reporting agency in Malaysia.
It also has 20% stake in Business Online Public Company Ltd (BOL), the leading credit information and risk management provider in Thailand.