16th Jul 2019 12:22
(Alliance News) - Electronic payment infrastructure firm MobilityOne Ltd said Tuesday it has sold its majority interest in a loss-making Bangladesh subsidiary for a nominal amount.
AIM-listed MobilityOne sold the 55% stake in Mobility i Tap Pay (Bangladesh) Ltd for MYR100, equivalent to GBP20, to Malaysian IT businessman Gul Rahfia Bin Gull Rahman.
The sale follows MobilityOne deciding to exit the Bangladesh unit amid ongoing losses at the firm. In 2018, Mobility i Tap Pay generated MYR7.65 million in losses from marginal revenue.
In 2018, MobilityOne generated a GBP1.6 million pretax loss on revenue of GBP125.5 million.
MobilityOne said although the "long-term business prospects" in the region "may have been positive", the firm would have been "required to incur significantly more costs in order to grow its revenue."
Instead, the sale will prevent the parent firm having to incur further losses and allow it to focus attention on its core Malaysian unit.
MobilityOne Chief Executive Hussian Rahman said following the sale of Mobility i Tap Pay, "the group will continue to grow its business operations in Malaysia, especially its core business in mobile phone prepaid airtime reload and bill payment business through more business partnerships to expand the payment terminal base and users in Malaysia."
Shares in MobilityOne were untraded on Tuesday in London, last quoted at 2.50 pence.
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