IOUpay (ASX: IOU) Acquisition of Malaysian Money Lending License
IOUpay (ASX: IOU) is excited to announce it has secured a Malaysian Money Lending License required to comply with Malaysia's Money Lending Act 1951 (MA1951 License) and Financial Services Act 2013, for the provision of Buy Now Pay Later (BNPL) service offerings to consumers and merchants in Malaysia.
Highlights
- The MA1951 License has been secured by way of the acquisition of 100% of the ordinary shares in MA1951 licence holder Sibu Kurnia Marine Sdn Bhd (200801033946 / 835284-D) (SKM) in exchange for RM4,300,000 (AUD1,375,000 based on an exchange rate of 3.127).
- Following best practices, the Company engaged two independent valuation experts and obtained formal valuation reports that documented the various valuation methodologies and other qualitative and quantitative analysis undertaken by those experts to determine an equity valuation of SKM.\
An MA1951 license enables the Company to offer BNPL and consumer loan facilities in Malaysia. The purchase will be funded from existing cash reserves.
“The completion of this critical milestone ahead of schedule enables the Company to now accelerate its plans to capitalise on the significant market opportunities in the BNPL and digital payments sectors as highlighted in our Corporate Presentation and Investor Update last year. Notwithstanding the regional COVID-19 environment including the revised Movement Control Order (MCO) implemented by the Malaysian Government last week, the market conditions and demand for our product offerings remain strong which is consistent with the continued increased uptake in online purchases and payments across the South East Asia region last year.”
~ Lee Chin Wee, Chairman of IOUpay
Read the full ASX announcement here.
To learn more about IOUpay, the extensive mobile banking and digital payments sphere:
