Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
KUALA LUMPUR - VCI Global Limited (NASDAQ:VCIG), a technology services company with $27.82M in revenue and strong financial health according to InvestingPro analysis, announced Wednesday it has rescinded its previously announced acquisition of a 20% equity stake in QuantGold Data Group Limited, resulting in the cancellation of associated shares. The company, currently trading below its Fair Value, maintains impressive gross profit margins of 54.43%.
The company said its board determined after an internal and strategic review that the proposed acquisition would not deliver optimal value for shareholders. VCI Global has initiated formal proceedings to rescind the transaction and cancel all shares previously allocated for the acquisition. With a healthy current ratio of 9.36 and more cash than debt on its balance sheet, the company appears well-positioned to maintain operational flexibility. For deeper insights into VCI Global’s financial health metrics and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro.
According to the company, a key factor in the decision was the discovery that Secure Encryption Storage Limited (SES), which QuantGold had contemplated acquiring, does not possess the portfolio of 129 patents that had been referenced as a fundamental component of the transaction structure.
"The initiation of the rescission and cancellation process reflects our commitment to maintaining a disciplined capital structure, especially following our recently completed reverse split," said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
The company clarified that no intellectual property has been transferred or assigned to VCI Global or QuantGold as part of the previously announced transaction.
VCI Global stated it will continue to advance its cybersecurity business through its V Gallant distributorship with SES and other technology partners, which it believes will enable faster market penetration while maintaining strategic flexibility.
The information in this article is based on a press release statement from the company. InvestingPro subscribers have access to 18 additional key insights about VCI Global, including detailed valuation metrics and financial health indicators that can help inform investment decisions.
In other recent news, VCI Global Limited has reported significant developments across its various subsidiaries. The company announced that its fintech arm, Credilab Sdn Bhd, has expanded its loan book to $35 million for the twelve months ended June 2025, achieving a 53% year-over-year revenue growth. Credilab has also received conditional approval for a full online lending license from Malaysia’s Ministry of Housing and Local Government. Additionally, VCI Global has secured a $22 million contract through its cybersecurity subsidiary, V Gallant Limited, to provide sovereign AI infrastructure to Codetext (BVI) Limited. This contract involves delivering a full-stack AI system with military-grade encryption and NVIDIA-powered compute systems.
Moreover, VCI Global has launched a dedicated Real-World Asset consultancy through its subsidiary, Smart Bridge Technologies Limited, aiming to capture a share of the projected $16 trillion tokenization market. The consultancy will offer services such as asset tokenization advisory and technology integration with blockchain platforms. In a move towards clean energy, VCI Global has also established VCI Energy Limited, a new subsidiary focused on clean energy and infrastructure projects, appointing Victor Lee as its CEO. These developments highlight VCI Global’s strategic expansion across fintech, AI infrastructure, tokenization, and clean energy sectors.
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