KUALA LUMPUR (Sept 6): E-business solutions and cybersecurity company Systech Bhd has received a notice of an unconditional mandatory takeover offer (MTO) for the company at 22 sen per share from Liew Choon Lian and his private vehicle Smartpro Capital Sdn Bhd. However, minority shareholders are unlikely to be enticed by the offer, given that it is 41.33% lower than Systech’s last traded price of 37.5 sen.

Liew has proposed to acquire all remaining shares amounting to a 47.75% stake in the company not already owned by him and persons acting in concert (PAC) — JCap Sdn Bhd,  Sun Jianwei and Low Min Yew.

The MTO comes on the heels of Liew’s acquisition of 180.69 million shares, amounting to a 52.25% stake, from Systech’s major shareholder Leinet Technology Bhd on Wednesday, for a total of RM39.75 million.

Liew intends to retain Systech’s listing on the ACE Market. He is currently the founder and chief executive offer (CEO) of IT solutions provider MDT Innovations Sdn Bhd (MDT) and chairman cum CEO of Nasdaq-listed Evergreen Corp.

The offer price of 22 sen per share is 41.33% lower than Systech’s last traded price of 37.5 sen at market close on Wednesday. Systech’s share price has risen an impressive 50% since the beginning of this year, from 25 sen.

The offer, to be paid in cash, will remain open for acceptance until 5pm for a period of not less than 21 days from the posting date (Sept 6), or another later date that may be announced at least two days before the closing date.

Systech returned to the black in the first quarter ended June 30, 2023 (1QFY2024) after it posted a net profit of RM580,000 or 17 sen per share, against a net loss of RM816,000 or 24 sen in 1QFY2023. This was on the back of higher revenue and better gross margin in the quarter under review. Revenue jumped 36.85% to RM6.5 million, from RM4.75 million in the same period last year, driven by the group’s e-logistics and cybersecurity segments.

Systech shares had closed 1.5 sen or 3.85% lower to 37.5 sen on Wednesday, valuing the company at RM128.67 million.