Total
0
Shares
IOUpay (ASX:IOU) - Executive Chairman, Aaron Lee
Executive Chairman, Aaron Lee
Source: Listcorp
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • IOUpay (IOU) is set to acquire a stake in a Malaysian finance business, I.Destinasi Sdn Bhd, for $41.3 million
  • The buy now pay later stock will buy a 43 per cent interest in the long-term, instalment-based credit company
  • IOU says its BNPL products are complimentary to IDSB’s long-term loan offerings and the Malaysian company owns a key licence for the region
  • The $41.3 million in consideration being handed by IOU may reduce if IDSB’s profit is less than $9.8 million at year end
  • Shares in IOUpay are trading 3.23 per cent in the green at 32 cents each after coming out of a trading halt

IOUpay (IOU) is set to acquire a stake in a Malaysian finance business, I.Destinasi Sdn Bhd, for $41.3 million.

The buy now pay later stock announced on Thursday it will buy a 43 per cent interest in the long-term, instalment-based credit company.

The private company has been around since 1981 and offers credit services to civil servants for and on behalf of Malaysian banks.

IOU said its products are complimentary to its own BNPL and banking offerings, while IDSB also owns a key licence for the region — the AG Code licence.

The fintech business said the acquisition will represent a non-controlling interest and there won’t be any merger of operations directly or indirectly.

IOUpay will buy its 43 per cent stake in the business via two payments of $20.7 million over six months.

Additionally, there is the potential for the consideration set to be paid by IOU to reduce if IDSB’s profit is less than $9.8 million at year end.

If the Malaysian financial business exceeds its estimated profit before tax at December 30, the consideration will still stay the same.

Following today’s acquisition news, shares in IOUpay have come out of a trading halt and were trading 3.23 per cent in the green at 32 cents each at 12:36 pm AEST

IOU by the numbers
More From The Market Herald
Novatti (ASX:NOV) - CEO and Managing Director, Peter Cook

" Novatti (ASX:NOV) to acquire ATX

Digital banking and payments company Novatti (NOV) will acquire South East Asian payments fintech, ATX.
ISX (ASX:ISX) - Managing Director, John Karantzis

" iSignthis (ASX:ISX) completes demerger

Software company iSignthis (ISX) has completed the demerger of its European business ISC Financial EU (ISXFEU).
MoneyMe (ASX:MME) - CEO, Clayton Howes

" MoneyMe (ASX:MME) hits $1b originations milestone

MoneyMe is celebrating after hitting a $1 billion in originations milestone during the recent September quarter of the 2021 financial year.
PayGroup (ASX:PYG) - Managing Director, Mark Samlal

" PayGroup (ASX:PYG) releases strong September results and FY22 guidance

PayGroup (PYG) is releasing its annual recurring revenue (ARR) guidance for the 2022 financial year.