ACE-market listed Systech Bhd shares price has hit an all-time high with the emergence of a new controlling shareholder.
On Sept 6, the cybersecurity solutions services provider saw Smartpro Capital Sdn Bhd becoming its controlling shareholder when it bought 180.7 million shares, or 52.25%, from Leinet Technology Bhd for RM39.75 million cash or 22 sen per Systech share.
The corporate move required Smartpro, controlled by Liew Choon Lian (50.1%) and JCap Sdn Bhd (49.9%), to table an unconditional mandatory general offer (MGO) for the remaining Systech shares at 22 sen each. Liew is also the chairman/CEO of Evergreen Corp.
The MGO ended yesterday. The share price kept rising, indicating that shareholders had sidestepped the 22 sen MGO offer, which was a steep 43.6% discount to the counter's closing price of 37 sen the day before the MGO was announced.
The counter ended up 4 sen or 8% to 53 sen, with 50 million shares exchanging hands yesterday (Oct 19).
In an independent advice circular released on Oct 9, TA Securities Holdings Bhd had recommended that shareholders reject the offer as it was deemed not fair and not reasonable.
It said the offer was not fair considering that the offer price was lower than the market price of Systech shares, notwithstanding that it was higher than the estimated fair value of RM39.63 million or 11.5 sen per share.
Systech provides cyber security software and hardware systems and related application and consultancy services and sale and supply of human capital management (HCM) software and solutions. It also provides a mailing house, transport, design and information system as well as printing of annual reports, labels and carrier sheets.
In an exchange filing on Aug 28, Systech posted net profit of RM580,000 for the first quarter ended June 30, 2023 (1Q24), compared to a net loss of RM816,000 in the same period a year earlier.
Its revenue for the quarter was up 36.9% to RM6.5 million due to the increase in contribution from both the e-logistics and cybersecurity segments.
Systech gained listing on the ACE Market of Bursa Malaysia in June 2011.