Systech gets shareholders’ nod to proceed with capital exercise

KUALA LUMPUR: Information technology (IT) solutions company Systech Bhd forges ahead with its transformation plan as the company received shareholders’ nod for its capital exercise proposals at its extraordinary general meeting (EGM) today.

Systech focuses on human capital management solutions and cybersecurity.

The proposals included a share issuance of up to 144 million new ordinary shares, the acquisition of the entire equity interest of Wilstech Sdn Bhd for RM75 million and a bonus issue of up to 160.7 million new warrants in Systech on the basis of one warrant for every four existing shares.

Executive director Teoh Keng Chang described the proposals as a cornerstone of the company’s transformation journey.

By streamlining operations through divesting non-performing segments and expanding through acquisitions of profit-making portfolios, he said the company is now better equipped to deliver enhanced corporate solutions.

"We will have stronger resources to deliver the contracts on hand for the provision of artificial intelligence (AI) and Internet of Things (IoT) solutions under our corporate solution business segment.

"In the meantime, we are also in active discussions with several potential customers, hence, the additional proceeds provide the support needed to scale our business,” he said in a statement.

Teoh also noted that the proposed acquisition exercise would create synergies with the company’s existing offerings.

With Wilstech - a one-stop business-to-business (B2B) IT specialist - on board, he said Systech could expand and diversify its customer base while streamlining resources and unlocking new business opportunities. "More excitingly, this proposed acquisition includes a profit guarantee by the vendor that Wilstech shall achieve an audited profit after tax of not less than RM5 million for a year,” he shared.

"On balance, we are upbeat on the outlook of the group as we chart further progress on our transformation journey. As we continue to execute our strategic plans, we are confident to see continuous improvement in our financial performances over the coming years,” he added. - Bernama

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