REG - MobilityOne Limited - Disposal of MobilityOne South Asia Sdn Bhd

MobilityOneAnnouncement

16/07/2019 11:10

RNS Number : 6976F
MobilityOne Limited
16 July 2019
 


16 July 2019
MobilityOne Limited
("MobilityOne", the "Company" or the "Group")
 
Disposal of MobilityOne South Asia Sdn Bhd
 
MobilityOne (AIM: MBO), the e-commerce infrastructure payment solutions and platform provider, announces that, due to the continued losses being incurred by the Group's operations in Bangladesh, the Board has decided to cease its activities in the region and dispose of its interest in its 55% owned Bangladesh operating subsidiary.
 
The Company is pleased to announce that it has today entered into a sale and purchase agreement with Gul Rahfia Bin Gull Rahman (a Malaysian businessman in IT related business), to dispose of its entire equity interest in MobilityOne South Asia Sdn Bhd ("M1SA") for a cash consideration of RM100 (c. £20), being the issued share capital of M1SA of RM100 (the "Disposal"). There are no conditions outstanding and the Disposal has completed today.
 
M1SA is an investment holding company and it does not have any business operations other than an investment of 55% equity interest in Mobility i Tap Pay (Bangladesh) Limited ("MiTP") which was acquired in November 2017 for BDT550,000 (c. £5,000). Since the acquisition of the 55% interest, MiTP has been incurring losses under the management of the minority shareholders of MiTP in Bangladesh and it only generated a small revenue (c. £7,000) in 2018.  For the financial year ended 31 December 2018, the M1SA group incurred losses of RM7.65 million (c. £1.45 million) of which RM4.14 million (c. £0.78 million) was attributable to MobilityOne and had net liabilities of RM8.18 million (c. £1.54 million).    
 
Although the long-term business prospects for MiTP may have been positive, the company will be required to incur significantly more costs in order to grow its revenue.  As such, to avoid further losses to the Group, the Board has decided to discontinue its operations in Bangladesh by proceeding with the disposal and to focus the Group's attentions on its core market in Malaysia.  As a result of the disposal, the Company will not be required to consolidate the results of MiTP moving forward.
 
Dato' Hussain A Rahman, CEO of MobilityOne, commented: "With the disposal of M1SA and MiTP, the Group will continue to grow its business operations in Malaysia, especially its core business in mobile phone prepaid airtime reload and bill payment business through more business partnerships to expand the payment terminal base and users in Malaysia."
 
 
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For further information, contact:
 
MobilityOne Limited                                                                 +6 03 89963600
Dato' Hussian A. Rahman, CEO                                                www.mobilityone.com.my
har@mobilityone.com.my
 
Allenby Capital Limited (Nominated Adviser and Broker)      +44 20 3328 5656
Nick Athanas / James Hornigold
 
About MobilityOne Group:
MobilityOne provides e-commerce infrastructure payment solutions and platforms through its proprietary technology solutions. The Group has developed an end-to-end e-commerce solution which connects various service providers across several industries such as banking, telecommunication and transportation through multiple distribution devices including EDC terminals, mobile devices, automated teller machines (ATM) and internet banking. The Group's technology platform is flexible, scalable and designed to facilitate cash, debit card and credit card transactions from multiple devices while controlling and monitoring the distribution of different products and services.
For more information, refer to our website at www.mobilityone.com.my 
 




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