MoneyMax
Posted: Sun Jun 22, 2014 9:07 pmnot vested
Singapore Pawnshop Chain Inks Malaysian Partnership Deal
SINGAPORE: Listed on Singapore’s Exchange Catalist, MoneyMax Financial Services Ltd announced yesterday it would invest RM15.63 million (about S$6.1 million) to hold a 51% stake in a network of Malaysian pawnshops in its first overseas investment.
MoneyMax, one of Singapore’s largest pawnbroking chains, said its wholly-owned subsidiary Cash Online Sdn Bhd (COL) has entered into a conditional share purchase agreement (SPA) with Chong Mei Sang as part of a partnership to grow the Malaysian network to up to 34 over the next few years.
In a statement, MoneyMax said Chong, who has over 30 years of experience in the production and trading of jewellery both domestically in Malaysia and in the export market, will first restructure the eight outlets to place their ownership under a new holding company (NHC).
COL will then enter into a partnership with Chong, with COL holding a 51% stake and Chong holding a 49% stake in NHC.
MoneyMax, which is funding the investment from internal resources and bank borrowings, said COL will pay Chong an initial RM4million within three days of confirming that the conditions precedent of the SPA are met.
Another RM4.9 million will be paid to Chong once two new outlets – one in Petaling Jaya and the other in Batu Pahat – commence operations after obtaining licensing, increasing each of its paid-up capital to RM4 million and completing bank, management and other documentation to COL’s satisfaction.
The final tranche of RM6.7 million will be paid progressively as 24 new outlets are launched in various parts of Malaysia.
The transaction will immediately expand MoneyMax’s store network from 37 in Singapore currently to 45, including the eight existing outlets, which are mostly located in Johor.
“This investment is highly significant as it is the first major corporate action since our IPO and marks the start of our regional expansion.
“Chong brings with him experience and relationships which will help us accelerate our growth in Malaysia, a market with exciting opportunities,” MoneyMax executive chairman and chief executive officer Peter Lim said.
The company expects to start recognising revenue and profits from the Malaysian operations by the end of this financial year ending Dec 31, 2014.
Source: Malaysian Digest
http://malaysiandigest.com/business/506 ... -deal.html
Singapore Pawnshop Chain Inks Malaysian Partnership Deal
SINGAPORE: Listed on Singapore’s Exchange Catalist, MoneyMax Financial Services Ltd announced yesterday it would invest RM15.63 million (about S$6.1 million) to hold a 51% stake in a network of Malaysian pawnshops in its first overseas investment.
MoneyMax, one of Singapore’s largest pawnbroking chains, said its wholly-owned subsidiary Cash Online Sdn Bhd (COL) has entered into a conditional share purchase agreement (SPA) with Chong Mei Sang as part of a partnership to grow the Malaysian network to up to 34 over the next few years.
In a statement, MoneyMax said Chong, who has over 30 years of experience in the production and trading of jewellery both domestically in Malaysia and in the export market, will first restructure the eight outlets to place their ownership under a new holding company (NHC).
COL will then enter into a partnership with Chong, with COL holding a 51% stake and Chong holding a 49% stake in NHC.
MoneyMax, which is funding the investment from internal resources and bank borrowings, said COL will pay Chong an initial RM4million within three days of confirming that the conditions precedent of the SPA are met.
Another RM4.9 million will be paid to Chong once two new outlets – one in Petaling Jaya and the other in Batu Pahat – commence operations after obtaining licensing, increasing each of its paid-up capital to RM4 million and completing bank, management and other documentation to COL’s satisfaction.
The final tranche of RM6.7 million will be paid progressively as 24 new outlets are launched in various parts of Malaysia.
The transaction will immediately expand MoneyMax’s store network from 37 in Singapore currently to 45, including the eight existing outlets, which are mostly located in Johor.
“This investment is highly significant as it is the first major corporate action since our IPO and marks the start of our regional expansion.
“Chong brings with him experience and relationships which will help us accelerate our growth in Malaysia, a market with exciting opportunities,” MoneyMax executive chairman and chief executive officer Peter Lim said.
The company expects to start recognising revenue and profits from the Malaysian operations by the end of this financial year ending Dec 31, 2014.
Source: Malaysian Digest
http://malaysiandigest.com/business/506 ... -deal.html