KUALA LUMPUR: CTOS Digital Bhd has proposed to undertake a share placement to raise RM270mil to pay for the proposed acquisition of a 49% stake in Juris Technologies Sdn Bhd and an additional 2.25% stake in Thailand-based Business Online Public Company Limited, Bernama reported.

       In a filing with Bursa Malaysia, the company said the proposed placement entails the issuance of up to 166.67 million new ordinary shares, representing about 7.6% of the total number of its issued shares as at Jan 31, 2022.

       It said the issue price would be determined and announced later, while the proposed placement is expected to be completed by the first quarter of 2022.

       CTOS Digital said the placement would enable the company to raise the necessary funds to be used for the acquisition of Juris Technologies for RM205.8mil, BOL (RM34.9mil), other acquisitions to be identified (RM25.6mil), and estimated expenses for the placement (RM3.7mil).

       “The proposed placement is the most appropriate avenue to raise additional funds without having to incur interest expense or service principal repayment as opposed to conventional bank borrowings, an expeditious way of raising funds from the capital market and further strengthens the financial position,” it said.

       The proposed acquisition of Juris Technologies will provide the group with opportunities to improve its operations and financial performance in the future, it added.

       On December 24 last year, CTOS Digital has proposed to acquire a 49% stake in Juris Technologies, a financial technology specialist, for RM205.8mil cash.

       The company also expects to further benefit from its increased shareholding in BOL due to the latter’s continued growth and from the potential synergies from CTOS Digital’s product suites.