- IOUpay (IOU) is set to acquire a stake in a Malaysian finance business, I.Destinasi Sdn Bhd, for $41.3 million
- The buy now pay later stock will buy a 43 per cent interest in the long-term, instalment-based credit company
- IOU says its BNPL products are complimentary to IDSB’s long-term loan offerings and the Malaysian company owns a key licence for the region
- The $41.3 million in consideration being handed by IOU may reduce if IDSB’s profit is less than $9.8 million at year end
- Shares in IOUpay are trading 3.23 per cent in the green at 32 cents each after coming out of a trading halt
IOUpay (IOU) is set to acquire a stake in a Malaysian finance business, I.Destinasi Sdn Bhd, for $41.3 million.
The buy now pay later stock announced on Thursday it will buy a 43 per cent interest in the long-term, instalment-based credit company.
The private company has been around since 1981 and offers credit services to civil servants for and on behalf of Malaysian banks.
IOU said its products are complimentary to its own BNPL and banking offerings, while IDSB also owns a key licence for the region — the AG Code licence.
The fintech business said the acquisition will represent a non-controlling interest and there won’t be any merger of operations directly or indirectly.
IOUpay will buy its 43 per cent stake in the business via two payments of $20.7 million over six months.
Additionally, there is the potential for the consideration set to be paid by IOU to reduce if IDSB’s profit is less than $9.8 million at year end.
If the Malaysian financial business exceeds its estimated profit before tax at December 30, the consideration will still stay the same.
Following today’s acquisition news, shares in IOUpay have come out of a trading halt and were trading 3.23 per cent in the green at 32 cents each at 12:36 pm AEST