KUALA LUMPUR (Dec 18): CTOS Digital Bhd (KL:CTOS) is disposing of its entire 26% equity interest in Experian Information Services (Malaysia) Sdn Bhd (EIS) for RM80 million cash to its partner Experian (Malaysia) Sdn Bhd, which currently holds the remaining 74% stake in EIS.

CTOS originally acquired the stake in EIS, which is involved in credit reporting, credit bureau and information services, in July 2019 for RM56.2 million.

The disposal is expected to result in a one-off gain of approximately RM18 million upon completion, according to CTOS's bourse filing on Thursday. This may lift earnings per share by around 30%, based on the group’s financial results for the nine months ended Sept 30, 2025.

CTOS's wholly-owned subsidiaries Enfo Sdn Bhd and CTOS Insights Sdn Bhd have signed a sale and purchase agreement with Experian (Malaysia), formerly known as RAM Credit Information Sdn Bhd, for the stake disposal. On completion of the deal, EIS will cease to be an associate of CTOS.

CTOS said the disposal is in line with its strategy to optimise synergies within its investment portfolio and reallocate capital towards its core businesses and strategic growth initiatives.

Of the RM80 million proceeds raised from the disposal, RM49 million will be allocated for the repayment of borrowings, RM1.6 million for capital gains tax, and RM29.4 million for working capital and other corporate purposes.

With part of the proceeds earmarked for debt reduction, the group’s gearing is expected to improve, declining from 27% as at Dec 31, 2024 to about 20% after completion.

Shares of CTOS Digital were down two sen or 2.53% to 77 sen at Thursday's closing, with a market capitalisation of RM1.76 billion.