MoneyMax Holding More Ground Malaysia
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Malaysian pawnbroker MoneyMax Financial Services – an offshoot of the Singapore group that specialises in pawnbroking, retail and trading in pre-owned jewellery, watches and branded goods – is buying into 13 pawnbrokers in Malaysia.
It is acquiring interests in the traders from CMS Top Holdings for a consideration of RM56.6 million (US$13.5 million) through its wholly owned subsidiary Cash Online. The transaction is being funded through internal resources and will underwrite expansion of its pawnbroking network in Malaysia.
The target firms last year posted an aggregate net loss of about RM1.02 million, and have net tangible assets of about RM50.1 million.
Separately, Chong Mei Sang, which established a JV with MoneyMax in 2014, will acquire about 1.96 million shares in the capital of each target company, including Pajak Gadai Bukit Gambir and Pajak Gadai Senai.
Questions & Answers
Q.What is the total cost for MoneyMax to acquire these interests in Malaysian pawnbrokers?
What is the total cost for MoneyMax to acquire these interests in Malaysian pawnbrokers?
MoneyMax is paying RM56.6 million, equivalent to US$13.5 million, for its interests in the 13 Malaysian pawnbrokers. This transaction is being funded using its internal resources.
Q.What was the financial performance of the target firms in the last year?
What was the financial performance of the target firms in the last year?
Last year, the 13 target firms collectively reported a net loss of approximately RM1.02 million. Their combined net tangible assets were around RM50.1 million.
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