CTOS sells 10% Juris stake to Natsoft for RM50 million

CTOS Digital has agreed to sell a 10% stake in Malaysian software developer Juris Technologies to Natsoft , Juris' initial and majority shareholder, for RM50 million. The sale cuts CTOS' holding from 49% to 39%, leaving Juris an associate after completion.

CTOS described the deal as the first phase of a plan to monetise the investment it built in March 2022, when it acquired its 49% interest for RM205.8 million.

The price is based on an agreed RM500 million valuation for Juris, or 17 times earnings on its audited 2025 accounts. Juris recorded nearly RM30 million in profit after tax and net assets of RM69.6 million that year; the stake being sold has a net book value of RM47.4 million.

CTOS plans to return most proceeds to investors, splitting RM49 million evenly between a special dividend and share buybacks. The dividend is estimated at 1.07 sen per share, with the remaining RM1 million covering tax and transaction costs.

CTOS intends to pursue either an initial public offering of Juris or a sale of its remaining shares to a third party within 18 months, subject to market conditions. If no exit happens in that window, CTOS can buy back all or part of the 10% stake at RM500 per share.

The smaller holding is expected to reduce CTOS' share of Juris' profits by about RM3 million on an annualised basis, though it books a one-off gain of RM1.6 million and expects no material effect on 2026 earnings.

The staged exit — a partial sale now, a full exit later — lets CTOS lock in gains and reward shareholders while keeping optionality on how it cashes out the rest. The deal needs no shareholder or regulatory approval and should close by the end of July 2026.