CTOS Digital has agreed to sell a 10% stake in Juris Technologies to its initial and majority shareholder Natsoft for RM50 million.
The CTOS stake sale will reduce its holding in the software developer from 49% to 39%, with Juris remaining an associate after completion.
CTOS acquired its 49% interest for RM205.8 million in March 2022.
The sale price is based on an agreed RM500 million valuation for Juris, equivalent to 17 times earnings based on its audited 2025 accounts.
Juris recorded nearly RM30 million in profit after tax and net assets of RM69.6 million that year. The stake being sold has a net book value of RM47.4 million.
CTOS Sets Out Plans for RM50 Million Proceeds
CTOS plans to use RM24.5 million of the proceeds for a special dividend and another RM24.5 million for share buybacks.
The remaining RM1 million will cover estimated tax and transaction expenses.
The proposed dividend is estimated at 1.07 sen per share, although the final amount may change depending on the buyback programme.
CTOS expects a one-off gain of RM1.6 million from the disposal.
The smaller stake is also expected to reduce its share of Juris’ profits by RM1.6 million after completion, or about RM3 million on an annualised basis.
The company does not expect the transaction to materially affect its earnings or earnings per share for the financial year ending December 2026.
CTOS described the deal as the first phase of its plan to monetise the investment.
It intends to pursue either an initial public offering of Juris or the sale of its remaining shares to a third party within 18 months, subject to market conditions.
If no exit takes place within the agreed period, CTOS will have the option to buy back all or part of the 10% stake at RM500 per share.
The disposal does not require shareholder or regulatory approval and is expected to be completed by the end of July 2026.
Featured image: Edited by Fintech News Malaysia, based on image by galitskay via Magnific
