MobilityOne Limited Acquisition of Tanjung Pinang Resources & new JV (4684I)
14 December 2020 - 6:00PM
UK Regulatory
TIDMMBO
RNS Number : 4684I
MobilityOne Limited
14 December 2020
14 December 2020
MobilityOne Limited
("MobilityOne", the "Company" or the "Group")
Acquisition of Tanjung Pinang Resources Sdn Bhd and new joint
venture agreement to expand payment terminal related activities in
Malaysia
Acquisition of Tanjung Pinang Resources Sdn Bhd
MobilityOne (AIM: MBO), the e-commerce infrastructure payment
solutions and platform provider, wishes to announce that
MobilityOne Sdn Bhd ("M1 Malaysia"), the Group's wholly owned
operating subsidiary in Malaysia, has entered into an agreement to
acquire the entire issued share capital of Tanjung Pinang Resources
Sdn Bhd ("TPR") . TPR's principal business activities are to
provide money-changing and remittance agent services in
Malaysia.
TPR holds a money changing licence from the Central Bank of
Malaysia which is complementary to the Group's existing remittance
business via its 50% owned subsidiary, OneTransfer Remittance Sdn
Bhd. This licence is valid through to 27 March 2022 and capable of
extension with the approval of the Central Bank of Malaysia.
Currently TPR only has one money changing outlet in Malaysia.
The total consideration payable to the vendors of TPR is
RM300,000 (equivalent to c.GBP55,567*) in cash payable from the
Group's existing cash resources.
For the year ended 31 December 2019, TPR reported revenue of
RM122,586 (equivalent to GBP22,707*) and generated a loss before
tax of RM73,457 (equivalent to GBP13,606*).
Given the comparative small size of TPR when compared to the
existing Group, the acquisition of TPR will not have a material
impact on the Group's current revenue or earnings nor is it
expected to have a material contribution to the growth prospects of
the Group. At the present time the Central Bank of Malaysia is not
issuing new money changing licences or remittance licences and
therefore the Board believes the acquisition of TPR does have
strategic importance to the Group and will be important for the
Group's future expansion plans notwithstanding the relative size of
TPR.
Incorporation of M1 Merchant Sdn Bhd and new joint venture in
Malaysia
M1 Malaysia has also entered into a joint venture agreement (the
"Agreement") with Mr Lee Hock Leong to establish a new joint
venture company, M1 Merchant Sdn Bhd ("M1 Merchant"). The business
activities of the new joint venture will be to expand payment
terminal related business activities in Malaysia which include
acquiring new merchants for credit cards and e-wallets payment
acceptance. The Group expects to generate revenue from the
Agreement by early 2021.
Mr Lee has significant business contacts and many years of
experience working in payment terminal businesses in Malaysia.
Under the Agreement, Mr Lee will work with the Group to further
expand the Group's terminal base in Malaysia.
M1 Malaysia and Mr Lee will own 60 per cent. and 40 per cent. of
the equity interest in M1 Merchant respectively. M1 Merchant will
have an initial share capital of RM10 (c.GBP1.90) and the share
capital will increase to RM300,000 (c.GBP55,000) before
commencement of M1 Merchant's business activities. M1 Malaysia will
contribute 60 per cent. of the enlarged share capital of M1
Merchant (equivalent to RM180,000 (c.GBP33,000)) and Mr Lee will
contribute the remaining 40 per cent. Should M1 Merchant require
further future funding it is expected that this would be funded by
either bank borrowings or advances from M1 Merchant's shareholders
in accordance with their equity interests. It is anticipated that
part of the profits generated under the Agreement would be, after
the initial 12 month period, distributed to M1 Merchant's
shareholders in the form of a dividend.
Under the Agreement, there is no minimum commitment for either
party, no exclusivity arrangements and no fixed time period for the
Agreement. Either party can discontinue the Agreement at any time
by offering their shareholding in M1 Merchant to the other party at
a price to be mutually agreed.
Whilst the Group is pleased to announce the Agreement as it
validates its present strategy, it is not expected that the joint
venture agreement will have a material revenue contribution or
earnings impact on the Group.
For further information, please contact:
MobilityOne Limited +6 03 89963600
Dato' Hussian A. Rahman, CEO www.mobilityone.com.my
har@mobilityone.com.my
Allenby Capital Limited
(Nominated Adviser and Broker) +44 20 3328 5656
Nick Athanas /James Hornigold
*Based on exchange rate as on 10 December 2020 of RM:0.185222
GBP
About the Group:
MobilityOne provides e-commerce infrastructure payment solutions
and platforms through its proprietary technology solutions. The
Group has developed an end-to-end e-commerce solution which
connects various service providers across several industries such
as banking, telecommunication and transportation through multiple
distribution devices including EDC terminals, mobile devices,
automated teller machines ("ATM") and internet banking. The Group's
technology platform is flexible, scalable and designed to
facilitate cash, debit card and credit card transactions from
multiple devices while controlling and monitoring the distribution
of different products and services.
For more information, refer to our website at
www.mobilityone.com.my
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