Electronic payment service provider Speed Pay Plc plans to dispose of 51 percent of its stake to Kuala Lumpur-listed online transaction servicer GHL Systems Bhd for $2.04 million, the Malaysian company said in a filing to the local bourse yesterday.
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The company said the move was part of its plans to expand its footprint in Asean.
GHL feels there is a strong growth opportunity in the Cambodian mobile and internet payment space.
“With the growing Cambodian economy and the government’s continuing efforts to become an upper-middle income country, there is increasing awareness to improve the standard of living, and develop a strong banking sector and financial inclusion in Cambodia,” GHL said in the filing with Bursa Malaysia.
GHL said there are 11 institutions that provide payment services here, including Wing, True Money, E-Money, LyHour, PayPro, Smart Axiata, PayGo SEA, Pi pay, and Speed Pay.
“Cambodia has been experiencing an e-commerce boom over the last five years that has been bolstered by rapid development and ongoing government initiatives to become a digital economy by 2023.
“Based on this, and increasing support by the National Bank of Cambodia towards payment service providers to boost its e-commerce sector, Speed Pay is poised to undertake the rising growth opportunities,” it added.
According to the announcement, loss-making Speed Pay, its majority shareholders Lim Sambat and Da Sopheak, and GHL’s wholly-owned subsidiary GHL Asia Pacific Ltd entered into a conditional share purchase and subscription, and shareholders’ agreements yesterday.
GHL noted that Speed Pay’s net loss and net assets of $350,000 and $650,000, respectively, are based on its latest financial statement for the financial year ended Dec 31, 2017.
Its share purchase price and subscription price were arrived on a ‘willing-buyer-willing-seller’ basis after considering the cost and time of setting up a company with the required payment service provider license and operation in Cambodia.
Speed Pay director Mr Lim, 44, owns a 75 percent stake in the company while 30-year-old Mr Da possesses the remaining 25 percent equity.
Following the proposed acquisition by GHL, their stake would be reduced to 39 percent (Mr Lim) and 10 percent (Mr Da).
GHL plans to fund the proposed acquisition using internally-generated funds.
Barring unforeseen circumstances, the proposed acquisition is expected to be completed by Dec 31.