Mer­chantrade Asia likely to form joint ven­ture with Ax­i­ata

The Star Malaysia - StarBiz - - News -

PETALING JAYA: Ax­i­ata Group Bhd plans to have a joint ven­ture (JV) with money ser­vices busi­ness provider Mer­chantrade Asia Sdn Bhd to of­fer dig­i­tal fi­nan­cial ser­vices and so­lu­tions.

In a fil­ing with Bursa Malaysia, the Asia-re­gional telecom­mu­ni­ca­tions group said its dig­i­tal ser­vices arm, Ax­i­ata Dig­i­tal Ser­vices Sdn Bhd (ADS), which has in­vested over US$160mil (RM670.7mil) to build a port­fo­lio of 29 dig­i­tal as­sets, yes­ter­day com­pleted the in­cor­po­ra­tion of Mer­chantrade Dig­i­tal Ser­vices Sdn Bhd (MDS), the des­ig­nated ve­hi­cle for the JV.

Ax­i­ata, through wholly owned sub­sidiary Cel­com Ax­i­ata Bhd, has held a 20% stake in Mer­chantrade Asia, the coun­try’s first and largest non-bank re­mit­tance ser­vice provider, since 2013.

MDS has a paid-up share cap­i­tal of RM1,000, of which 51% is held by ADS and the rest by Mer­chantrade Asia, which also op­er­ates a mo­bile vir­tual net­work.

The mo­bile com­mu­ni­ca­tion ser­vices provider said the in­cor­po­ra­tion of MDS is not ex­pected to have any ma­te­rial ef­fect on the earn­ings and net tan­gi­ble as­sets of Ax­i­ata for the fi­nan­cial year end­ing Dec 31, 2017.

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