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E-commerce infrastructure payment solutions and platform provider, MobilityOne, has announced its intention to acquire 50% of OneTransfer Remittance Sdn Bhd.
The group's whole owned operating subsidiary, MobilityOne Sdn Bhd entered into an agreement on February 26, 2021 to acquire the 50% shareholding the group does not already own.
The total consideration for the acquisition of RM3,000,000 (equivalent to c.£531,000) 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 being obtained within three months from the date of the agreement.
OneTransfer Remittance 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 the business 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 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 existing 50% interest in OTR is currently treated as an associate company of M1 Malaysia and has therefore not been previously consolidated in the annual report and accounts.
At 2:10pm: (LON:MBO) MobilityOne Ltd share price was 0p at 9p