17th Oct 2013 08:57
LONDON (Alliance News) - Mobile banking and payments technology company Monitise PLC Thursday said it would take full ownership of its Asia Pacific joint venture by issuing 20 million shares to partner Hong-Kong investment group First Eastern Mobile Investments Ltd, the investment vehicle of Hong-Kong businessman Victor Chu.
The deal values the First Eastern stake in the joint venture at GBP11.25 million, based on the Monitise closing share price of 56.25 pence Wednesday, it said.
Following the transaction, Monitise will also take full control of Monitise Asia Pacific's 49% stake in its Indonesian joint venture with PT Astra Graphia Information Technology. That partnership, started in 2011, was created to develop new mobile services for financial institutions targeted at both banked and unbanked consumers in Indonesia.
First Eastern Mobile Investments is the investment vehicle of Hong-Kong businessman Victor Chu, who has a track record of investing in UK companies.
"First Eastern under the guidance of Victor Chu has been a formative partner for us, playing an extremely valuable role in the development of our relationships and capabilities in the Asia Pacific region over the past three years," Monitise Chief Commercial Officer Lee Cameron said in a statement. "At Monitise, we have a track record for taking control of joint venture relationships to help streamline and simplify the international structure of our global business."
Cameron earlier this week accompanied UK Chancellor of the Exchequer George Osborne on a trip to China aimed at drumming up Chinese investment in the UK, British business in China, and repairing relations between the two countries after it soured when Prime Minister David Cameron met the Dalai Lama
Monitise shares were down 0.9% at 55.75 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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