Systech gets shareholders’ nod for capital exercise

Information technology (IT) solutions company Systech Bhd forges ahead with its transformation plan as the company received shareholders’ nod for its capital exercise proposals at its EGM yesterday.

Systech focuses on human capital management solutions and cybersecurity.

The proposals included a share issuance of up to 144 million new ordinary shares, the acquisition of the entire equity interest of Wilstech Sdn Bhd for Rm75mil and a bonus issue of up to 160.7 million new warrants in Systech on the basis of one warrant for every four existing shares.

Executive director Teoh Keng Chang has described the proposals as a cornerstone of the company’s transformation journey.

By streamlining operations through divesting non-performing segments and expanding through acquisitions of profit-making portfolios, he said the company is better equipped to deliver enhanced corporate solutions.

“We will have stronger resources to deliver the contracts on hand for the provision of artificial intelligence and Internet of Things solutions under our corporate solution business segment.

“We are also in active discussions with several potential customers, hence, the additional proceeds provide the support needed to scale our business,” he said in a statement.

Teoh also noted that the proposed acquisition exercise would create synergies with the company’s existing offerings.

With Wilstech – a one-stop business-to-business IT specialist – on board, he said Systech could expand and diversify its customer base while streamlining resources and unlocking new business opportunities. — Bernama