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IOUpay jumps 18% on ministerial consent to acquire Sibu Kurnia Marine

Highlights

  • IOUpay has secured ministerial consent for the transfer of 100% of Sibu Kurnia Marine’s shares to IOU Pay (Asia).
  • The acquisition was undertaken to secure a Malaysian Money Lending Licence (MA1951 Licence).
  • This milestone enables the Company to accelerate its plans to cash in on the significant market opportunities in the BNPL and digital payments space.

IOUpay Limited (ASX:IOU) has strengthened its foothold in the Malaysian buy now pay later (BNPL) space with formal government approval to wholly acquire Sibu Kurnia Marine Sdn Bhd (SKM).

In a significant development, the Company has secured green light from the Malaysian Ministry of Housing and Local Government for the transfer of shares in SKM to IOU Pay (Asia) Sdn Bhd.

Triggered by the significant update, IOU shares jumped over 18.292% from the previous close, trading at AU$0.242 midday on 14 January 2022.

ALSO READ: Why BNPL player IOUpay can expect a bright 2022

IOUpay acquires formal ownership title of SKM

In early 2021, the Company secured a Malaysian Money Lending Licence (MA1951 Licence) via the acquisition of 100% of the ordinary shares in SKM.

The MA1951 Licence is required to comply with Malaysia’s Money Lending Act 1951 and Financial Services Act 2013, for the provision of BNPL service offerings to consumers and merchants in Malaysia.

ALSO READ: IOUpay in sweet spot: Terrific 2021 paves way for brighter days ahead

The receipt of the ministerial consents and formal approvals has allowed IOUpay to complete the transfer of control and formal ownership title of SKM. The government approval was necessary since SKM holds the MA1951 Licence.

IOUpay had been awaiting the required approval from the Ministry, with delays caused due to the COVID-19, and the impacts from various changes of the Malaysian government during that time. Despite the unexpected delay in the Ministerial consent being granted, the process has all been wrapped up within the terms of the acquisition.

ALSO READ: Here’s the latest update on IOUpay’s investment in Malaysian finance business

IOUpay’s focus on Merchant & Consumer Acquisition

IOUpay has increased merchant acquisitions with the opening up of the Malaysian economy as business development personnel are able to be more active in the field and engage with prospective merchants through in-person marketing and account management calls.

During the first half of the December 2021 quarter, the Company added new merchants to almost every industry vertical category.

More than 100 merchants operating over 300 outlets across almost every industry vertical category around Malaysia were added to the myIOU platform during the first half of the December quarter.

Key industry verticals added in December 2021 quarter

Source: Copyright © 2022 Kalkine Media®, Data Source: IOU Update, dated 23 November 2021

ALSO READ: Strong uptake of BNPL offering accelerates IOUpay (ASX:IOU) growth in first half of Q4

With the completion of this critical milestone, IOUpay is well positioned to accelerate its plans to capitalise on the significant market opportunities in the BNPL and digital payments sectors.

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