MSM International Limited Announces Disposal of Entire Stake in Cosmos Technology International Berhad

Date of Announcement: 21 April 2026
Company: MSM International Limited (SGX: MSMI)

Key Highlights

• MSM International Limited (“MSM”) has sold its entire remaining 2% stake (5,130,000 shares) in Cosmos Technology International Berhad (“Cosmos”) to Dato’ Chong Toh Wee for RM2,022,980 in cash.
• The sale was completed on 21 April 2026, with MSM no longer holding any shares in Cosmos.
• The sale price of RM0.3943 per Cosmos share represents a significant premium of 51.7% over the last closing market price of RM0.26 on 20 April 2026.
• The transaction will result in a gain of approximately RM0.23 million for MSM.
• Proceeds will be used for working capital and debt repayment.

Deal Details

MSM International Limited (“the Company”) has finalized the disposal of its remaining investment in Cosmos Technology International Berhad (“Cosmos”). The transaction involved the sale of 5,130,000 ordinary shares, representing approximately 2% of Cosmos’ issued share capital, to Dato’ Chong Toh Wee (the Managing Director and a substantial shareholder of Cosmos) for a cash consideration of RM2,022,980.

The sale was executed at RM0.3943 per Cosmos share, a substantial 51.7% premium to the last traded price of RM0.26 per share on 20 April 2026. No introducer fees were incurred, and the buyer is deemed independent and unrelated to MSM’s directors or controlling shareholders.

Background on Cosmos

• Cosmos is listed on the ACE Market of Bursa Malaysia, focusing on the distribution and supply of fluid control products and digital solutions for water, wastewater, and oil & gas sectors.
• As of 30 April 2025, Cosmos reported a net tangible asset value of RM42.94 million and a net loss of RM8.83 million. However, for the 9 months ended 31 January 2026, the company turned profitable, recording a net profit of RM1.01 million and net tangible assets of RM44.05 million.

Financial Impact on MSM International Limited

• Gain on Disposal: MSM expects to book a gain of approximately RM0.23 million from the transaction.
• Net Tangible Assets (NTA): NTA per share will increase from 167.84 sen to 169.29 sen post-disposal.
• Earnings Per Share (EPS): EPS will improve from 42.17 sen to 43.62 sen post-disposal.
• Dividend Income: MSM received approximately RM77,000 in dividend income from Cosmos for the 6 months ended 30 September 2025 (when it held about 6% in Cosmos), but none for the full year ended 31 March 2025.

Use of Proceeds

The RM2.02 million in proceeds, less immaterial transaction costs, will be deployed for working capital and repayment of debt, strengthening MSM’s financial position.

Rationale and Strategic Implications

• MSM states the disposal is in its best interests, allowing it to realize a gain, generate cash inflow, and refocus on its core businesses and future developments.
• The disposal is not expected to have any material impact on MSM’s core businesses or business segments.
• As the transaction exceeds 5% but is below 50% on Catalist Rule 1006 tests, it is classified as a “disclosable transaction” and not a major transaction requiring shareholder approval.

Other Information

• No director, substantial, or controlling shareholder of MSM has any direct or indirect interest in the disposal.
• No new director appointments or service contracts are associated with this transaction.
• All material facts have been disclosed to the best of the board’s knowledge.
• Documentation related to the disposal is available for inspection at MSM’s registered office for three months from the announcement date.

Potential Price Sensitivity

• This disposal may be price sensitive as it delivers an immediate cash inflow, improves MSM’s NTA and EPS, and refocuses the company on its core operations, potentially enhancing long-term shareholder value.
• The fact that the shares were sold at a substantial premium to market price and that MSM has fully exited its stake in Cosmos could be interpreted as a strategic shift, which investors may view positively or negatively depending on their assessment of Cosmos’ prospects.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own due diligence or consult professional advisors before making investment decisions. The writer and publisher assume no responsibility for any actions taken based on the information provided above.

View MSMIntl Historical chart here