- Fatfish Group (FFG) has entered a binding agreement to acquire 85 per cent of Malaysian corporate entity Forever Pay
- Forever Pay holds a money lending licence from Malaysia’s Government, which Fatfish will obtain through the acquisition
- Fatfish Group’s buy forms part of its strategy to enter the retail buy now, pay later market in South East Asia
- The company will pay $870,000 in total consideration, consisting of $450,000 cash and $420,000 in ordinary company shares
- Fatfish Group is up 8.33 per cent and trading at 13 cents per share
Fatfish Group (FFG) has entered a binding agreement to acquire 85 per cent of Malaysian corporate entity Forever Pay.
Forever Pay is a Malaysia-incorporated business management consultancy service. The business holds a money lending licence, which was awarded by the Ministry of Housing and Local Government of Malaysia.
The lending licence allows Forever Pay to conduct financing business, such as retail buy now, pay later services. Fatfish Group will obtain access to this key money lending licence through its acquisition of Forever Pay.
This acquisition forms part of Fatfish Group’s larger strategy to enter the retail BNPL market in South East Asia. The company will be able to use Forever Pay’s money lending licence to roll out its existing BNPL business, Smartfunding, across the region.
Fatfish Group will also use its existing infrastructure and expertise to help Forever Pay launch its own retail BNPL service.
Fatfish Group will pay $870,000 to Forever Pay as total consideration for the acquisition of the business and its lending licence. This amount will consist of $450,000 in cash, with the remaining $420,000 to be paid through the issue of ordinary company shares.
Three million ordinary shares in Fatfish Group will be issued to Forever Pay’s shareholder at 14 cents per share. The cash portion of the consideration will be paid over 12 months, funded from the company’s working capital.
Fatfish Group is up 8.33 per cent, trading at 13 cents per share at 10:50 am AEST.