CTOS Digital has announced that it had entered into a Share Purchase Agreement with OCBC, Affin Bank, and Affin Hwang Investment Bank to acquire 910,000 ordinary shares in RAM representing 9.1% of the total paid-up share capital for a total cash purchase consideration of RM25 million.
RAM Holdings is a leading provider of independent credit ratings, research, training, risk analysis, environmental, social, and governance analytics, and bond pricing and valuation data. The Company was incorporated in 1990 as a catalyst for the domestic debt-capital market and as the nation’s first credit rating agency. It is the pioneer in the provision of credit-rating services for the Malaysian capital market and plays a leading role in providing crucial and independent credit opinions that are needed by investors and other market participants to assist in their investment and financial decisions.
RAM’s rating portfolio encompasses a vast range of local and foreign corporates, multinationals, banks, insurance companies, government-linked, and other public-financed entities. Underscored by over 30 years’ expertise in credit analysis, risk management, economics, and industry research.
In the financial year 2020, the firm generated revenue of RM40 million and profit after tax of RM8.4 million. RAM has total assets of RM188 million and net assets of RM167.2 million.
The Purchase Consideration was arrived at based on a willing buyer willing seller basis after taking into consideration that it represents 1.6x FY2020 net asset value of RAM and 32.8x FY2020 profit after tax, which is in line with the other listed credit rating agencies globally.
The acquisition of a strategic minority stake in RAM will allow both companies to leverage each company’s expertise in credit assessment, data, and analytics to further extend their product offering and value proposition to their existing customer base.