KUALA LUMPUR: Vstecs Bhd
has proposed to dispose of its entire 40% equity interest in ISATEC Sdn Bhd for RM48.75mil to monetise its investment in the enterprise digital solutions firm.
The buyer, digital and AI transformation services firm Skyform Pte Ltd, will also acquire a further 35% interest from the management shareholders of ISATEC, giving it a combined 75% interest in the firm.
VSTECS CEO JH Soon said the disposal, coupled with the dividends received from ISATEC, will give the company realised total cash returns of RM64.67mil, which is about 3.46 times its original investment cost.
"Our investment in ISATEC was originally intended to strengthen the Group’s ICT Services segment. Since then, we have also built and significantly expanded our in-house ICT Services capabilities, with segment revenue increasing more than tenfold since 2018.
"We believe the investment has achieved its original strategic objectives, and it is now time to redeploy the capital into our wholly-owned core businesses, which continue to experience robust growth," he said in a statement.
He added that the disposal proceeds will go mainly towards working capital to support the expansion of the company's core businesses in ICT distribution, enterprise systems and ICT services.
Our Enterprise Systems business, in particular, is undertaking increasingly larger projects, including AI-related data centre infrastructure, while longer procurement cycles and higher equipment costs have increased working capital requirements.
"The additional financial flexibility coming from the disposal proceeds will strengthen our ability to support larger projects while allowing us to respond quickly to new opportunities across AI-infrastructure, cloud computing and enterprise digital transformation,” he said.
The proposed disposal is expected to be completed by the first quarter of 2027.
