CTOS Digital Berhad (CTOS Digital or the Group) announced today that its shareholders had given the green light for the Group’s proposed acquisition of 49.0% stake in fintech specialist JurisTech (Juris Technologies Sdn Bhd) for a cash consideration of RM205.8 million.
JurisTech is a leading Malaysian-based fintech company that specialises in enterprise-class software solutions for banks, financial institutions, insurance, and telecommunication companies. The company provides a complete suite of integrated software solutions
covering end-to-end credit lifecycle management.
“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,” Eric Hamburger, CTOS Digital Group CEO said.
“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,” he added.
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 RM270 million to fund the acquisition of 49% stake in JurisTech, additional 2.25% equity stake in BOL, other acquisitions to be identified, and to defray
placement expenses.
