Tex ....
Wasn't in the announcement?
COMPANY ANNOUNCEMENT
SkyNetGlobal to acquire $200 million e-payments business
SKG becomes Southeast Asia’s largest regional network provider ofelectronic top-ups to prepaid mobile users
SYDNEY 6 September 2005 – SkyNetGlobal Limited, (“SkyNetGlobal” or “the Company”)
today announced that it has entered into a conditional agreement to acquire a controlling
stake in E-pay (M) Sdn Bhd (“E-pay”), a Malaysian-headquartered regional provider of
electronic payment solutions and top-up services for prepaid mobile users.
E-pay provides its pay-by-cash or card mobile top-up services through its established network
of more than 6,000 point of sale locations in Malaysia, Indonesia, and Pakistan and processes
in excess of 7.5 million transactions a month. As South East Asia's largest regional provider of
electronic top-ups for pre-paid mobile airtime, E-pay is well positioned to capture a leading
share of the estimated 115 million prepaid mobile users in the region.
E-pay generated revenue of A$220 million and net profit after tax of A$2.0 million for the
financial year ending 31 March 2005. On completion of the acquisition, the Consolidated
Entity will convert to a financial year ending 31 December, with E-pay expected to deliver a
net profit of A$5 million for the 2006 calendar year. The Consolidated Entity will continue with
E-pay's past practice of distributing as a dividend 40% of annual retained profits.
Under the terms of the agreement, the Company will acquire Orion Gateway Ltd. ("OGL"),
which owns 60% of E-pay, for an initial consideration of A$28 million ($A20 million in shares
and A$8 million in cash). Further consideration of up to A$14.5 million is payable upon certain
profit-related milestones for 2006. The agreement is conditional upon the Company gaining
shareholder and other approvals, and on the Company raising A$20 million to fund part of the
acquisition and to expand the business.
Jonathan Soon, SkyNetGlobal CEO, said, “The E-pay acquisition offers an exciting
opportunity to enter a rapidly growing market through a leading player with a strong track
record of profitability. We see this acquisition as a major step in the development of the
company and the board believes it offers significant value for shareholders.”
Given the scale of the opportunity afforded by E-pay, the Company will consider its options in
relation to its existing W Home business.
Further details on the acquisition of E-pay and the Company’s plans are contained in the
attached document.
CONTACT INFORMATION
Asia Pacific:
Anthony Blass
SkyNetGlobal Limited
Level 7, 451 Pitt Street Sydney NSW 2000
:)
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