KUALA LUMPUR (Feb 13): E-business solutions and cybersecurity company Systech Bhd said it is buying an 80% stake in a human capital management software and computer hardware firm for  RM14.4 million.

It said it is buying the stake in TalentCloud AI Sdn Bhd from Sea Capital Holdings Sdn Bhd, whose sole director and shareholder is Datuk Hooi Jia Hao.

Systech has been a loss-making company since the financial year ended Dec 31, 2020 (FY2020). For the first nine months of FY2022, Systech trimmed its net loss to RM1.19 million from RM1.7 million in the same period of FY2021, as revenue rose marginally to RM16.411 million from RM16.408 million, boosted by the cybersecurity segment.

In a bourse filing on Monday (Feb 13), Systech also proposed to dispose of its entire interests in five loss-making  e-business subsidiaries — Syscatech Sdn Bhd, Mobysys Sdn Bhd, Techcasys Sdn Bhd, Syscatech Inc and SysCode Sdn Bhd — for RM6.6 million.

Part of the proceeds from this sale will be used to pay for the acquisition of TalentCloud, the company said.

The purchaser of the five subsidiaries is Bill Tham Kok Weng, who is a major shareholder of SysArmy Sdn Bhd, a 51%-owned subsidiary of Systech.

Following the exercises, Systech said it will be positioned to capitalise on the government’s initiatives to accelerate technology adoption through the establishment of the National Council of Digital Economy and Fourth Industrial Revolution.

The proposals are expected to be completed in the second quarter of 2023.

Systech’s share price closed down half a sen or 1.35% at 36.5 sen on Monday, giving the company a market capitalisation of RM126.91 million.