VSTECS Bhd is set to dispose of its entire 40% equity interest in ISATEC Sdn Bhd for RM48.75 million cash, marking the group’s exit from the investment after seven years.
Upon completion of the proposed disposal, VSTECS will cease to be a shareholder of ISATEC, while Skyform Pte Ltd will acquire its 40% stake alongside a further 35% from ISATEC’s management shareholders, giving Skyform a 75% interest in the company.
The disposal will allow VSTECS to crystallise the value of its investment, with total cash returns — including dividends received from ISATEC — reaching RM64.97 million, equivalent to about 3.46 times its original investment cost.
Chief Executive Officer JH Soong said the investment had achieved its original objective of strengthening VSTECS’ ICT Services segment, noting that the group has since significantly expanded its own in-house capabilities, with segment revenue growing more than tenfold since 2018.
VSTECS plans to channel the disposal proceeds primarily into working capital to support the expansion of its ICT Distribution, Enterprise Systems and ICT Services businesses.
The additional funding is expected to provide greater flexibility as the group undertakes larger projects, particularly in artificial intelligence-related data centre infrastructure, while positioning it to pursue opportunities in cloud computing and enterprise digital transformation.
The proposed disposal remains subject to conditions under the share purchase agreement and is expected to be completed by the first quarter of 2027.
