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OTHERS NETX HOLDINGS BERHAD - ACQUISITION OF 49% EQUITY STAKE IN MOUNTAIN MONEY SDN. BHD.

NETX HOLDINGS BERHAD

Type Announcement
Subject OTHERS
Description
NETX HOLDINGS BERHAD 
- ACQUISITION OF 49% EQUITY STAKE IN MOUNTAIN MONEY SDN. BHD.

The Board of Directors of NetX Holdings Berhad (“NetX” or “the Company”) wishes to announce that E-FX Sdn. Bhd. (“EFX”), a wholly-owned subsidiary of the Company, had on 28 October 2021 acquired 416,500 ordinary shares in Mountain Money Sdn. Bhd. (“MMSB”), representing 49% equity interest in MMSB, for a total consideration of RM171,500.00 only (“Acquisition”).

 

MMSB was incorporated in Malaysia as a private limited company. MMSB is a licensed money changer registered under Bank Negara Malaysia. Based on the latest audited financial statements of MMSB as at 31 December 2020, MMSB was recorded a loss after taxation of RM113,377 and net assets of RM748,470.

 

The directors and shareholders of MMSB prior to the completion of the Acquisition are as follows:

 

Directors and/or Shareholders

No. of shares

% of issued

share capital

Chong Yuen Fook

510,000

60

Chong Mun Hoe

340,000

40

Khor Loong Chay

-

-

Total

850,000

100

 

The Acquisition is in line with NetX’s business objective of venturing into financial technology industry. EFX will launch a digital platform which offers the travellers the most convenient to buy foreign currencies. Typically, travellers need to rush to a money changer during its operating hours or queue for half an hour to get the best exchange deals. With EFX that operates 24x7, they can buy foreign currencies at best rate using secured online payments anytime and then can choose to collect it at selected physical outlets and kiosk machines or opt for delivery to their doorstep. The Acquisition is intended to accomplish EFX or NetX in venturing into the currencies trading business.

 

The purchase consideration of RM171,500.00 was arrived at on a willing-buyer willing-seller basis after taking into the consideration of the following:

 

(a) The inherent value of MMSB’s money changer license approved by Bank Negara Malaysia.

(b) The potential earnings which could be derived from MMSB’s money changer business.

 

The Acquisition was funded entirely from the proceed of private placement exercises of the Company and corporate exercise relating to the Share Issuance to Macquarie Bank Limited which completed on 19 January 2018.

 

The Acquisition is not expected to pose any additional risks to the NetX Group other than operational risks associated to the business of MMSB. There are no liabilities to be assumed by NetX arising from the Acquisition.

 

The Acquisition will not have any effect on the share capital and substantial shareholders' shareholdings of the Company as it will be fully satisfied in cash. In addition, the Acquisition is not expected to have a material effect on the earnings per share, net assets and gearing of the Group for the financial year ending 30 November 2021.

 

The Acquisition is not subject to approval of the shareholders of the Company or other relevant authorities. The highest percentage ratio applicable to the Acquisition  pursuant to Rule 10.02(g) of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad is 0.50%.

 

None of the directors and/or major shareholders of the Company and/or persons connected with them have any interest, direct or indirect, in the Acquisition.

 

The Directors of NetX, after taking into consideration of all financial and other factors, is of the opinion that the Acquisition is in the best interest of the Company.

 

This announcement is dated 28 October 2021.






Announcement Info

Company Name NETX HOLDINGS BERHAD
Stock Name NETX
Date Announced 28 Oct 2021
Category General Announcement for PLC
Reference Number GA1-28102021-00037




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