MoneyMax Financial Services Ltd., among Singapore's largest pawnbroker chains, is making its very first investment overseas by way of its wholly-owned subsidiary Cash Online Sdn Bhd (COL).
A press statement by MoneyMax Financial Services said it is investing through its subsidiary RM 15.63 million (around S$ 6.1 million) for a 51% stake in a network of Malaysian pawnshops.
The investment comes in the wake of COL's conditional Share Purchase Agreement (SPA) with Chong Mei Sang to grow the Malaysian chain from eight outlets at preset to 34 within the next few years.
The SPA calls for Chong to first restructure the eight outlets, placing their company under a New Holding Company (NHC).
COL will then enter into a partnership with Chong for a 51% stake in NHC and Chong having a 49% stake.
The press statement said MoneyMax will fund the investment from internal sources and if needed, bank borrowings also.
COL will pay Chong an initial RM 4.0 million within three days after conditions in the SPA are met.
The transaction will immediately expand Moneymax's outlet network to 45, as it will incorporate into its chain the eight existing Malaysian outlets mostly in the state of Johor.
The press statement said another RM 4.9 million will be paid to Chong for two new outlets, one in Petaling Jaya and another in Batu Pahat begin their operations.
The final tranche of RM 6.7 million will be paid in progressive increments as 24 new outlets are launched in various parts of Malaysia.
MoneyMax is listed in the Singapore Exchange Catalist.
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