CTOS seeks to raise stake in RAM to 39.1 pct via RM51.3 mln share purchase

KUALA LUMPUR, July 15 (Bernama) -- CTOS Digital Bhd has proposed to raise its stake in RAM Holdings Bhd to about 39.1 per cent by acquiring 19.9 per cent equity interest in the credit rating service provider for RM51.3 million.

It also proposed to purchase up to a further 30.9 per cent stake in RAM Holdings for not more than RM28.50 per share, or up to RM88 million in cash.

The additional purchase would be made over 12 months after getting its shareholders’ approval at an extraordinary general meeting to be convened for the proposals, it said in a filing with Bursa Malaysia today.

On completion of the proposals, CTOS Digital said, it may hold up to 7 million RAM shares, representing 70.0 per cent equity interest.

The credit reporting company said that it signed a conditional share purchase agreement to buy the 19.9 per cent stake from Oscar Matrix Sdn Bhd today.

The purchase consideration would be funded by a combination of bank borrowings and/or internally generated funds, the exact proportion of which would be determined later, it said.

‘’As at the latest practicable date, the company is in discussions with the potential sellers on the proposed additional RAM acquisition but has yet to enter into any definitive agreement with any of them.

‘’The company will ensure that the RAM shares will not be acquired from any of the directors and/or major shareholders of CTOS Digital and/or persons connected to the unless prior approval is sought from the company’s shareholders,’’ it said.

Between July 2021 and May 2022, CTOS Digital entered into share purchase agreements CIMB Bank Bhd, Standard Chartered Bank Malaysia Bhd, OCBC Bank (M) Bhd, Affin Bank Bhd; Affin Hwang Investment Bank Bhd, and Alliance Investment Bank Bhd to acquire a 19.2 per cent stake in RAM Holdings for RM49.6 million, or an average of about RM25.82 per share.

-- BERNAMA