Vstecs exits Isatec stake for RM48.75mil, 2.6 times its cost
What's the deal? Vstecs BhdDealroom has a profile for this one. Try Dealroom → is selling its entire 40 percent stake in Malaysian software firm Isatec Sdn BhdDealroom has a profile for this one. Try Dealroom → to Singapore-based Skyform Pte LtdDealroom has a profile for this one. Try Dealroom → for RM48.75 million. The sale is part of a wider share purchase agreement in which Vstecs and four management shareholders will offload a combined 75 percent stake for RM91.41 million.
The terms: Vstecs receives RM48.75 million for its 233,334 shares, while the four management shareholders collectively get RM42.66 million for their 35 percent. The price is a 103.63 percent premium over the RM23.94 million carrying value of the investment as at December 31, 2025, and 159.31 percent above its original RM18.80 million cost.
What's the endgame? Vstecs plans to redirect capital into its core ICT Distribution, Enterprise Systems, and ICT Services segments. It will channel RM45.9 million, or 94.15 percent of proceeds, into working capital within 12 months.
The numbers: The disposal is expected to yield a one-off pro forma gain of about RM21.96 million, or 2.05 sen per share, lifting net assets per share to roughly 53 sen from 51 sen. Counting RM16.22 million in dividends received since 2019, Vstecs' total cash returns reach about RM64.97 million — around 3.46 times its original cost over seven years.
Why now? Vstecs says its in-house ICT Services capabilities have outgrown the original rationale for the Isatec stake. Segment revenue rose more than tenfold to RM454.45 million in FY25, from RM39.86 million in FY18, before the investment.
Chief executive officer JH Soong said Isatec had "grown and scaled well" during the holding period. "We believe the investment has achieved its original strategic objectives and it is now time to redeploy the capital into our wholly-owned core businesses," he added.
Who's buying? Skyform specialises in enterprise digital and artificial intelligence transformation services. It is backed by SeaTown Private Capital Master Fund, managed by SeaTown Holdings InternationalDealroom has a profile for this one. Try Dealroom →, which is owned by Seviora HoldingsDealroom has a profile for this one. Try Dealroom →, Temasek's main asset management platform.
The signal: The deal reflects a wider push into enterprise AI and digital transformation, with Temasek-linked capital acquiring an established Malaysian software provider serving the corporate, financial, and public sectors. Isatec, incorporated in 1994, will cease to be a Vstecs associate on completion, expected by the first quarter of 2027.
Read more: nst.com.my
Image credit: cbowns
