Massive Power switch in Celcom Planet deal
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Malaysian investment holding company PUC will invest RM90 million (US$23 million) in Celcom Planet (CPSB), which owns and runs e-commerce platform 11Street Malaysia.
PUC, which provides integrated media, e-commerce and technology services, says the deal will give it management control of 11Street Malaysia.
Meanwhile, CPSB claims to be one of the largest e-commerce companies in Malaysia.
It is a JV between Axiata Digital Services and Korean-owned SK Planet Global Holdings
“The investment paves the way for the company to increase potential revenue streams in advertising and media, and financial services from the synergistic collaboration for the company and its subsidiaries,” PUC says in a Bursa Malaysia filing.
As part of the terms of the deal, PUC will have the right to nominate and appoint the CEO and chief marketing officer of 11Street Malaysia.
For last year, 11Street Malaysia recorded a GMV of about RM427 million, selling more than 13 million products from 40,000-plus sellers.
Questions & Answers
Q.What is the total value of PUC's investment in Celcom Planet?
What is the total value of PUC's investment in Celcom Planet?
PUC is investing RM90 million, which is equivalent to US$23 million, in Celcom Planet. This investment will give PUC management control over the 11Street Malaysia platform.
Q.What benefits does PUC expect from this investment?
What benefits does PUC expect from this investment?
PUC anticipates increasing potential revenue streams in advertising, media, and financial services. This is expected to come from synergistic collaboration between the companies and their subsidiaries.
Q.What was 11Street Malaysia's performance last year?
What was 11Street Malaysia's performance last year?
Last year, 11Street Malaysia recorded a Gross Merchandise Volume (GMV) of approximately RM427 million. The platform sold over 13 million products and featured more than 40,000 sellers.
Q.Who are the current joint venture partners of Celcom Planet?
Who are the current joint venture partners of Celcom Planet?
Celcom Planet is currently a joint venture between Axiata Digital Services and SK Planet Global Holdings, which is Korean-owned. PUC's investment will now give it management control.