TIDMMBO
RNS Number : 6580Q
MobilityOne Limited
01 March 2021
1 March 2021
MobilityOne Limited
("MobilityOne", the "Company" or the "Group")
Proposed acquisition of 50% shareholding in OneTransfer
Remittance Sdn Bhd
Update on acquisition of Tanjung Pinang Resources Sdn Bhd
MobilityOne (AIM: MBO), the e-commerce infrastructure payment
solutions and platform provider, is pleased to announce that
MobilityOne Sdn Bhd ("M1 Malaysia"), the Group's wholly owned
operating subsidiary in Malaysia, entered into an agreement (the
"Agreement") on 26 February 2021 to acquire the 50 per cent.
shareholding the Group does not already own in OneTransfer
Remittance Sdn Bhd ("OTR") (the "Acquisition"). OTR provides
international remittance services in Malaysia.
The total consideration for the Acquisition of RM3,000,000
(equivalent to c.GBP531,000*) has been paid to the vendors from the
Group's existing cash resources. The Acquisition is conditional
upon the written approval of Bank Negara Malaysia (the central bank
for Malaysia) ("BNM") being obtained within three months from the
date of the Agreement.
Background on OTR and rationale for the Acquisition
OTR is incorporated in Malaysia and provides international
remittance services in Malaysia. It currently holds a remittance
business licence issued by BNM and has six outlets in Malaysia.
MobilityOne currently owns, via M1 Malaysia, 50% of OTR and upon
completion of the Acquisition the Group will own the entire issued
share capital of OTR.
OTR is also acting as one of the correspondence remittance
companies for MoneyGram Payment Systems, Inc. ("MoneyGram") in
Malaysia enabling the customers of OTR to send and receive money
via MoneyGram's global platform. OTR currently offers physical
outlets and has recently started e-remittance services via its
digital remittance platform.
E-remittance is a key component of the Group's e-payment and
fintech ecosystem. Following the agreement entered into with
MoneyGram in July 2020, OTR also intends to progress a strategy to
partner with other reputable international partners to grow the
e-remittance business.
Following completion of the Acquisition, the Group's 100%
interest in OTR will be consolidated in the Group's annual report
and accounts. The Group's existing 50% interest in OTR is currently
treated as an associate company of M1 Malaysia and has therefore
not been previously consolidated in the Group's annual report and
accounts.
For the year ended 31 December 2019, OTR reported revenue of
RM976,815 (equivalent to c.GBP170,895*) and generated a loss before
tax of RM457,396 (equivalent to c.GBP80,960*). As at 31 December
2020 OTR owes MobilityOne a total of RM1,093,521 (equivalent to
c.GBP193,550*) as a result of previously incurred costs.
Given the comparative small size of OTR when compared to the
existing Group, the Acquisition is not expected to 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. There are currently a total of 38 companies with
remittance licences from BNM and the Board believes it is unlikely
that BNM will issue any new remittance licences in the near future.
As such the Board believes the Acquisition does have strategic
importance to the Group and will be important for the Group's
future expansion plans notwithstanding the relative size of
OTR.
Terms of the Acquisition
The total consideration paid by the Group to the vendors of OTR
is RM3,000,000 (equivalent to c.GBP531,000*) in cash from the
Group's existing cash resources. The vendors of OTR are Azlan Shah
bin Jaffril (34.9% of OTR's share capital) and Anil Kumar
Chigurupati (15.1% of OTR's share capital).
The Acquisition is conditional upon the written approval of BNM
being obtained within three months from the date of the Agreement.
Should this condition not be fulfilled then the principal vendor,
Azlan Shah bin Jaffril, has, pursuant to the terms of the
Agreement, undertaken to refund the consideration of RM3,000,000
(equivalent to c.GBP531,000*) to the Group following which the
Agreement would be terminated.
Update on Acquisition of Tanjung Pinang Resources Sdn Bhd
On 14 December 2020 the Group announced that M1 Malaysia had
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 BNM which is complementary to OTR. As noted in the
announcement of 14 December 2020, TPR's licence is valid through to
27 March 2022 and capable of extension with the approval of BNM.
Further details on TPR and the agreement entered into with TPR are
provided in the Group's announcement of 14 December 2020.
As at the date of this announcement, BNM has yet to approve the
Group's acquisition of TPR and as such the acquisition of TPR has
not been completed. There can be no guarantee at this stage that
completion will take place.
Further announcements on the status of the acquisition of TPR
will be made at the appropriate time.
Dato' Hussian A Rahman, CEO of MobilityOne, commented :
"Following completion of the Acquisition and with full ownership
control of OTR, the Group will be better placed to drive the future
growth of the OTR business."
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
*Based on exchange rate as on 28 February 2021 of RM:0.177
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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END
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