Merchantrade Asia likely to form joint venture with Axiata

  • Business
  • Thursday, 14 Sep 2017

XL Axiata, a unit of Malaysia

PETALING JAYA: Axiata Group Bhd plans to have a joint venture (JV) with money services business provider Merchantrade Asia Sdn Bhd to offer digital financial services and solutions.

In a filing with Bursa Malaysia, the Asia-regional telecommunications group said its digital services arm, Axiata Digital Services Sdn Bhd (ADS), which has invested over US$160mil (RM670.7mil) to build a portfolio of 29 digital assets, yesterday completed the incorporation of Merchantrade Digital Services Sdn Bhd (MDS), the designated vehicle for the JV.

Axiata, through wholly owned subsidiary Celcom Axiata Bhd, has held a 20% stake in Merchantrade Asia, the country’s first and largest non-bank remittance service provider, since 2013.

MDS has a paid-up share capital of RM1,000, of which 51% is held by ADS and the rest by Merchantrade Asia, which also operates a mobile virtual network.

The mobile communication services provider said the incorporation of MDS is not expected to have any material effect on the earnings and net tangible assets of Axiata for the financial year ending Dec 31, 2017.

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