NewsJade Marvel acquires 51% stake in community credit services provider

Jade Marvel acquires 51% stake in community credit services provider

KUALA LUMPUR (Oct 4): Jade Marvel Group Bhd has acquired a 51% stake in licensed community credit services provider MYK Capital Management Sdn Bhd for a purchase consideration of RM1.22 million.

Jade Marvel, in a filing with the local bourse on Monday, said its wholly-owned subsidiary Total IPCO Sdn Bhd had entered into a Share Sale Agreement with Datuk Tan Cheng Yam, Tan Eng Hwa and Pinjam Gadai 916 Sdn Bhd to purchase the 51% stake in MYK Capital.

Jade Marvel said as of the date of the filing, the acquisition was completed and MYK Capital is a 51%-owned subsidiary of the group.

“The purchase consideration is arrived at a willing-buyer willing-buyer basis, at approximately 1.2031 times of the net tangible assets accorded to 51% equity interest in MYK Capital as stated in its management accounts, as at the agreed accounting cut-off date of September 30, 2021, after taking into consideration factors such as the future prospects of the company’s business,” it added.

The group said the acquisition is to enable Total IPCO to expand and innovate its moneylending business model via MYK Capital, by initiating the “Drive Through Moneylending” concept outlets and having more branches — with the first of such outlets being planned for Penang.

Jade Marvel said the acquisition will not have any material effect on the earnings and net assets of the group for the financial year ending March 31, 2022.

“However, the prospective revenue from MYK Capital is expected to contribute positively to the future earnings of the group,” it added.

Shares of Jade Marvel closed 1.5 sen or 2.65% higher at 58 sen on Monday, valuing the group at RM163.22 million.

Edited by Lam Jian Wyn

The article originally posted in The Edge Markets: https://www.theedgemarkets.com/article/jade-marvel-acquires-51-stake-community-credit-services-provider
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