Ekuiti Nasional exits cross-border mobile transaction firm Tranglo for RM114.9m

October 11, 2018 | By | Reply More

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PETALING JAYA: Ekuiti Nasional Bhd (Ekuinas) has disposed of its 60% stake in mobile transaction gateway services provider Tranglo Sdn Bhd to Hong Kong-based TNG FinTech Group Inc for RM114.9 million, three years after acquiring the interest for RM54 million.

This translates to an internal rate of return of 26.8% and money multiple of 1.96 times the capital invested. This is Ekuinas’ ninth divestment, which brings its total realisation proceeds to more than RM2.0 billion.

“The selection of TNG was made after a rigorous sale process that attracted global interest from several parties. It was done on a merit-based process, where capability, resource and alignment with management’s vision were equally as important as price.

“We want to ensure that the next partner will further catalyse the business. As such, it is important that the buyer has the necessary expertise, experience and capabilities to not only continue operating the business but, more importantly, is equipped with the resources to develop and push the business further,” said Ekuinas CEO Syed Yasir Arafat Syed Abd Kadir.

In a statement today, Ekuinas said the decision was based on several considerations which include identifying a strategic partner that would be able to push the business into its next phase of growth.

Tranglo is a leading cross-border mobile transaction gateway company that facilitates airtime transfer and money remittance transactions which currently offers its services in most of the global corridors including the Southeast Asian countries, Hong Kong and China.

“Our longstanding relationship with Malaysian and global telecommunication and remittance companies have underpinned our growth trajectory and will continue to be a key factor in our forward strategy. Tranglo’s business relationship with TNG has grown over the years in partnership with Ekuinas.

We believe that this development is a positive step towards pushing our business further in cross-border money remittance,” said Tranglo executive director and chief strategy officer Sia Hui Chek.

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