K-One Technology Shares Surge 15% on RM94 Million Subsidiary Sale Vote

Market Response to Disposal Plan

Shares of K-One Technology Bhd opened higher on Tuesday morning, climbing as much as 15 per cent in early trading as investors positioned ahead of a crucial shareholder vote later this month. The Kuala Lumpur-listed electronics manufacturer is seeking approval to divest its cloud computing subsidiary and return capital to shareholders.

The stock opened at 13.5 sen, up 3.85 per cent from the previous close, before reaching a session high of 15 sen. By mid-morning, shares were trading at 14.5 sen, representing an 11.54 per cent gain and valuing the company at RM120.64 million. More than eight million shares changed hands, making K-One among the most actively traded counters on Bursa Malaysia.

Transaction Structure

K-One is selling G-AsiaPacific Sdn Bhd to two entities under Japan's Itochu group for a combined RM94 million in cash. Itochu Singapore Pte Ltd will acquire a 60 per cent stake for RM56.4 million, whilst Itochu Corp will purchase the remaining 40 per cent for RM37.6 million.

G-AsiaPacific, which provides cloud computing and related services, is wholly owned by K2 Meta Sdn Bhd, itself a wholly owned subsidiary of K-One. The disposal marks a significant exit from what has been the group's largest revenue contributor.

According to company filings, G-AsiaPacific accounted for 58.24 per cent of K-One's group revenue in 2025. K-One had invested a total of RM37.66 million in the subsidiary between 2019 and 2020.

Capital Return Plan

K-One announced that it will hold an extraordinary general meeting on 30 September to seek shareholder approval for both the disposal and a proposed RM46 million capital reduction. Of that amount, RM27.4 million will be distributed in cash to entitled shareholders, working out to approximately 3.29 sen per share based on the company's existing 832.01 million shares in issue.

The entitlement date for the cash distribution will be determined following shareholder approval. The transaction is expected to close by the fourth quarter of 2026, subject to necessary regulatory approvals.

Financial Impact

The disposal is projected to generate a pro forma gain of RM47.6 million for K-One. The RM94 million sale price represents a premium of nearly 150 per cent over the original investment cost of RM37.66 million made six years ago.

K-One first announced the proposed transaction on 4 August, when K2 Meta entered into a sale agreement with the Itochu entities. The company stated that the disposal provides an opportunity to unlock and realise the value of its investment in G-AsiaPacific.

K-One described G-AsiaPacific as having contributed meaningfully to the group's operations since the completion of its acquisition on 18 June 2020. The company noted it has successfully enhanced the value of the investment over the holding period.

Strategic Shift

The disposal signals a potential strategic shift for K-One, which operates across electronics manufacturing, research and development, and healthcare sectors. Exiting its largest revenue contributor suggests the company may be reallocating capital toward other business segments or returning funds to shareholders for redeployment.

The transaction also reflects continued interest from Japanese trading houses in Southeast Asian digital infrastructure assets. Itochu's dual-entity acquisition structure, splitting the stake between its Singapore and Japan arms, suggests both regional operational considerations and parent company strategic alignment.

The 30 September vote will determine whether K-One proceeds with unwinding a business that has dominated its revenue mix for the past year, whilst simultaneously testing shareholder appetite for immediate capital returns versus reinvestment in remaining operations.