CTOS obtains shareholders approval to acquire 49% stake in JurisTech


CTOS Digital Deputy Group Chief Executive Officer Eric Hamburger

KUALA LUMPUR: CTOS Digital Bhd has received its shareholders’ approval for the proposed acquisition of a 49% stake in Juris Technologies Sdn Bhd (JurisTech) for RM205.8mil cash.

“We are certainly elated by this vote of confidence from our shareholders, as we embark on this value-accretive exercise to bring a stronger end-to-end digital lending solution proposition to the market,” CTOS digital deputy group chief executive officer Eric Hamburger said in a statement.

“This acquisition dovetails with our goal of becoming the solution provider of choice to financial institutions, providing best in class credit data, software solutions and analytics services. We would also increase our capability to cater more effectively to the emerging customer markets of digital banks, peer-to-peer, buy-now-pay-later and micro/pay-day loans providers,” he added.

“With the acquisition slated for completion in the first quarter of 2022, new contributions from JurisTech are expected to complement CTOS Digital’s organic growth in our existing segments, as we seek to fulfil the pent-up demand following the reopening of economic sectors since the fourth quarter of 2021. Therefore, we are optimistic of CTOS Digital’s outlook going forward,” Hamburger said.

At the same extraordinary general meeting, CTOS Digital shareholders also approved the proposed placement entailing the issuance of 166.7 million new CTOS Digital shares, representing approximately 7.6% of the total number of issued CTOS Digital shares.

The actual number of placement shares will only be determined and announced at a later date after the receipt of all the relevant approvals.

Based on the illustrative price of RM1.62 each, the placement would potentially raise proceeds of up to RM270mil to fund the acquisition of 49% stake in JurisTech, an additional 2.25% equity stake in BOL, other acquisitions to be identified and to defray placement expenses.

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CTOS , JurisTech , acquisition , EGM

   

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