Macromac PLC Launch of Macromac Venture Ltd. (3937K)
16 April 2015 - 5:00PM
UK Regulatory
TIDMMACC
RNS Number : 3937K
Macromac PLC
16 April 2015
16 April 2015
Macromac plc
("Macromac", "the Company" or "the Group")
Incorporation of new subsidiary focused on investing in
complementary businesses
The Board of Macromac (AIM: MACC), the AIM quoted company
principally engaged in the business of mobile messaging services
and software solutions, is pleased to today announce the launch of
a new complementary business area. Macromac Venture Ltd. ("MVL"), a
newly incorporated wholly owned subsidiary of the Company, has been
established by the Company to make strategic investments and/or
acquisitions in early stage businesses in areas complementary to
Macromac's existing business operations.
The Board has decided to authorise MVL with a budget of
RM3,000,000 (c. GBP550,000*)in cash to fund their investments, with
the cash being funded from the Company's existing cash resources.
As at 31 March 2015, the Group held cash of c. RM9.7 million
(estimate based on the Group's unaudited management accounts) and
therefore the Group will be committing c.31% of cash available as
at 31 March 2015 into MVL. The Company will also consider issuing
new ordinary shares in Macromac as part consideration for
prospective new investments that are made by MVL.
MVL will seek to acquire interests in start-up or early-stage
businesses with complementary operations to the Group's existing
operations in mobile messaging and software solutions. Investee
companies are expected to be at pre or early-revenue stage and be
based in South East Asia.The Group will seek to invest in
businesses where Macromac is able to utilise its experience to
provide management assistance, funding and guidance to grow the
business to a position of commercialisation of its products or
services.
The Group will seek to initially acquire significant minority
stakes, with an option to acquire controlling stakes in the future.
The Directors have identified some initial target investments, with
the initial target companies operating in the areas of mobile
application development, bulk messaging gateway and mobile/digital
advertising.
The commitment of capital into MVL will reduce the funds
available to the Group for the development of its existing business
operations and, therefore, is expected to affect the Group's
profitability in the short to medium term. The Directors believe
that, in the long term, the incorporation and launch of MVL is in
the best interests of the Company as it seeks to diversify its
business operations.
Michael Lew, Chief Executive Officer of the Company,
commented:
"We believe that South East Asia is a fast growing region with a
population of in excess of 615 million. We believe that now is the
best time to support new technology companies to assist in their
growth and penetration, allowing us to expand our business further
into related businesses and diversify the breadth of business
activities. Since we listed on AIM in September 2013, we have
successfully acquired Smile Interactive Co., Ltd, a Thailand mobile
content gateway, and we look forward to MVL successfully
undertaking further investments and acquisitions for the benefit of
the Group's shareholders."
For further information please visit www.macromacgroup.com or
contact:
Macromac PLC +603 7784 9488
Michael Lew, Chief Executive Officer
Andrew Khoo, Chief Operating Officer
Allenby Capital Limited (Nominated Adviser and Broker) +44 (0)20
3328 5656
Nick Athanas
James Reeve
Leander (Financial PR) +44 (0)7795 168 157
Christian Taylor-Wilkinson
* all GBP equivalent calculations are based on an illustrative
RM/GBP exchange rate of 0.1837 as at 15 April 2015
About Macromac
Macromac is a group of companies headquartered in Malaysia
comprising two divisions. The Company aims to deliver mobile
content and web-based marketing solutions to its customers across
South East Asia. Through its proprietary MMP, the Company provides
Premium and Bulk Mobile Messaging solutions for corporate and
advertising campaigns, allowing its clients to better reach their
customers by delivering targeted mobile messaging. The Company also
develops project-based customised software solutions for its SME
clients.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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