AirAsia buying 40% stake of Tune Money, plans IPO in 5 years. (The Star) KUALA LUMPUR: AirAsia Bhd is buying a 40% stake in Tune Money Sdn Bhd for RM10mil cash consideration to leverage on the booming online transactions with plans to list the latter in about five years. The low-cost carrier said on Tuesday it had signed a shareholders’ agreement with Tune Money International Sdn Bhd (TMI) and Tune Money to buy 54 million new 10 sen shares in the enlarged paid-up of Tune Money. ----------------- Profit.at.Bursa ----------------- AirAsia will finance the purchase from its own funds. It also signed a commercial agreement and merchant agreement with Tune Money to sell and distribute prepaid card products developed by Tune Money to be targeted and marketed to, amongst others, the AirAsia customers. “The acquisition of shares into Tune Money will position AirAsia to take full advantage of future growth in electronic money, projected to expand rapidly especially in emerging markets such as Asean,” it said. “Tune Money holds an e-money license from BNM that has become more difficult to secure due to recent regulatory tightening under the Financial Services Act 2013. “As a business that relies heavily on online transactions, AirAsia would benefit from acquiring a stake in a company that holds such a license as this would allow AirAsia to direct future development to ensure suitable products and best terms for AirAsia. “This will be important as AirAsia moves closer to its ‘cashless cabin’ vision, which promises to boost ancillary spend and reduce shrinkage,” it said. AirAsia added by acquiring a stake in Tune Money, it would enjoy costs savings and improve margins for AirAsia as Tune Money was developing a proprietary closed-loop network that its prepaid cards will run on. It also pointed out this would reduce the cost of card acceptance to AirAsia by reducing the MDR by bypassing traditional credit card processing networks, in which Tune Money acts as acquirer, network and processor for purchases made with Tune Money-issued cards within the AirAsia Group ecosystem. The proceeds from the issuance of shares will be used by Tune Money to repay shareholders advances, finance the launch of the new products mentioned above and working capital. “The shareholders (of Tune Money) will work towards an initial public offering and listing of the shares of Tune Money or such other liquidity event within five years,” it said. On the commercial agreement, it said this would allow AirAsia to sell and to distribute hybrid prepaid card, Multi-currency FX hybrid prepaid card and two-in-one loyalty and payment hybrid card developed by Tune Money. ----------------- Profit.at.Bursa ----------------- | #saham | #airasia |
Posted on: Tue, 27 Jan 2015 12:49:41 +0000
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