The risk of IDSB taking $41.3 million and transferring the AG Code License away has no grounds. The license has been issued to IDSB not Dato Husain, Datin Malik or JSB. IDSB has approx $850m in loans outstanding, yes, the company does not take on any debt risks. IDSB makes money by taking 2% of each installment paid from salary deductions. This is the benefit of the AG license code. Transferring the license away from IDSB wouldn't make any sense and would likely breach the agreements with the partner banks.
It's worth going back and having a read about it he history of IDSB and Dato Husain. IDSB was formerly known as Arastu and was founded in 1981. Dato Husain started a company in partnership with two ex-bankers which was finance factoring company. He sold all his shares in the company to buy Arastu in 2004. The company was rebranded as IDSB. It wasn't until 2013 that IDSB was granted the AG Code license.
Ask yourself, does that sound like Dato Husain is the type of person that is unethical? Sounds to me like a businessman that knows the industry and has worked hard to be in the position where he can sell a stake of his company for $41.3m.
Clearly there's not going to be agreement on the acquisition. Ignoring the history of Dato Husain or how IDSB makes money is up to the individual.
IOU Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
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