PUC sells 13.76% stake in Pictureworks for US$7.17M, books US$1.39M gain
What's the deal? Malaysian-listed PUCDealroom has a profile for this one. Try Dealroom → Bhd has sold a 13.76% stake in Pictureworks International Holdings Ltd (PIHL) to Labuan-based investment holding company MacOS Ltd for US$7.17M in cash. The deal, completed on December 31, 2025, is expected to yield a gain of US$1.39M.
PUC disposed of 3.04 million ordinary shares in PIHL, halving its stake from 27.53% to about 13.76%. PIHL will now be accounted for as an investment rather than an associate.
Of the US$7.17M in proceeds, US$4.13M is earmarked for repaying borrowings, while US$2.99M will fund working capital and strategic investments in PUC's core businesses.
Why now? PUC — which operates across digital media, e-commerce, and fintech — said the disposal is part of ongoing efforts to optimise its investment portfolio and improve capital efficiency. The company wants to unlock value from what it considers a non-core holding and redeploy resources toward higher-priority opportunities.
PIHL, which provides AI-powered digital imaging solutions for theme parks and tourism, posted a net loss of US$1.99M and net liabilities of US$2.94M for the financial year ended December 31, 2024. That weak financial picture likely made a partial exit more attractive.
What could go wrong? PUC still holds a 13.76% stake in PIHL, meaning it retains exposure to a loss-making company with negative net assets. The company said it wants to "participate in any potential upside," but that upside is far from guaranteed given PIHL's current financials.
PUC itself is a micro-cap stock — shares closed at 1.5 sen on Friday, valuing it at just US$10.9M. That 25% single-day drop underscores the volatility and liquidity risk investors face.
The signal: Dealroom classifies PUC as a "breakout" stage company, yet its US$10.9M market cap and 25% single-day share price drop highlight the fragility that label can mask for micro-cap Southeast Asian tech firms. The partial exit from a loss-making, net-liability subsidiary to fund debt repayment and core operations is a textbook capital-recycling move — one likely to become more common as small listed tech players across the region prioritise survival and focus over diversification.
Read more: theedgemalaysia.com
