Ekuinas sells Tranglo stake to TNG FinTech for RM115mil

PETALING JAYA: Governmentlinked private equity fund management firm Ekuiti Nasional Bhd (Ekuinas) has divested its entire 60% stake in Tranglo Sdn Bhd to TNG FinTech Group Inc for RM114.9mil.

In a statement yesterday, Ekuinas said the divestment translates to an internal rate of return of 26.8% and money multiple of 1.96 times the capital invested.

“This is Ekuinas’ ninth divestment, which brings the company’s total realisation proceeds to more than RM2bil,” it said.

In the same statement, Ekuinas chief executive officer Syed Yasir Arafat Syed Abd Kadir said the selection of digital wallet platform operator, TNG, was made after a rigorous sale process that attracted global interest from several parties.

“It was done on a merit-based process, where capability, resource and alignment with management’s vision were equally as important as price. We want to ensure that the next partner would further catalyse the business.

“As such, it is important that the buyer has the necessary expertise, experience and capabilities to not only continue operating the business, but more importantly, is equipped with the resources to develop and push the business further.”

Ekuinas noted that the technology, media and telecommunications industry is becoming increasingly competitive, driven by disruption from new Fintech entrants.

“As such, the decision to divest was based on several considerations... firstly, that it would be in line with Ekuinas’ strategy to continue crystallising its assets when the time and economic climate are right. And secondly, to identify a strategic partner that would be able to push the business into its next phase of growth.

“Today, Tranglo is a leading cross-border mobile transaction gateway company that facilitates airtime transfer and money remittance transactions which currently offers its services in most of the global corridors, including the South-East Asian countries, Hong Kong and China.”

Meanwhile, Syed Yasir added that Ekuinas worked closely with Tranglo’s management team throughout the investment period to expand its airtime transfer and money remittance network.

“In terms of performance, Tranglo successfully grew its money remittance volume 15-fold since acquisition. We are confident that Tranglo will continue its strong performance over the mid-term,” he said.