MoneyMax to purchase stakes in 13 Malaysian pawnbrokers for US$13.5 million
Pakistan Press Club – Malaysia
MoneyMax Financial Services, a pawnbroking operator has recently took up interest stakes in 13 Malaysian pawnbrokers from CMS Top Holdings Sdn Bhd at an amount of RM56.6 million (about US$13.5 million).
The acquisition of stakes will be made through its wholly-owned subsidiary Cash Online Sdn Bhd with its transaction being funded through internal resources.
According to the group, this will provide the company with expansion of its geographical network to extend into the pawnbroking operations in Malaysia.
Completion of the proposed acquisition is also conditional upon MoneyMax being satisfied with the outcome of the valuation of the unredeemed pledges in the target companies and approval from \relevant authorities.
Listed on the Singapore’s Catalist board, MoneyMax specializes in pawnbroking, retail, and trading in pre-owned jewelry, watches, and branded goods.
For 12 months till 31st December 2016, the Malaysian pawnbroking firms has posted an aggregate net loss of about RM1.02 million (about US$245k) and net tangible assets of approximately RM50.1 million.
With the assumption that the proposed acquisition has been in effect as of Jan 1, 2016, financial effects of the deal on the earnings per share of the group is not material, MoneyMax said on Tuesday.
Separately, Chong Mei Sang who established a joint venture (JV) with MoneyMax in 2014 to conduct pawnbroking in Malaysia is also planning to acquire about 1.96 million shares each in the capital of the target companies including Pajak Gadai Bukit Gambir Sdn Bhd and Pajak Gadai Senai Sdn Bhd.