KUALA LUMPUR, Dec 27 — CTOS Digital Bhd shares rose in the early session today after the company proposed to acquire a 49 per cent stake in credit software provider and in its Thai associate BOL.
As of 10am, the counter gained three sen to RM1.76, with 2.74 million shares changing hands.
CTOS has revealed its plan to acquire Juris Technologies for RM205.8 million and an additional 2.25 per cent stake in BOL for up to RM34.9 million, both to be funded via private placement.
RHB Research, in a note, said the acquisition of Juris should enable CTOS to expand its offerings and provide integrated digital solutions that encompass data, platform and data analytics capabilities, to capture the immense growth opportunities in digital lending.
“We remain positive on CTOS’ growth prospects, given its unique growth preposition in the secular digitalisation trend. Also, the proposed acquisitions, if realised, should accelerate growth via new solutions and collaborations,” it said.
RHB maintains its “buy” call on the counter with a target price of RM2.42.
In a separate note, Maybank Investment Bank said the acquisitions are both value and earnings accretive, as the enlarged customer base enables cross-selling for both parties, improves sales funnel through enlarged marketing teams, and solidifies its market leadership through broader offerings of credit management solutions with minimal product overlap.
“We maintained buy and our target price is slightly raised to RM2.40,” it added. — Bernama
