GHL buys Paysys for Rm80mil

The chief executive of one victim, depositor Saigonbank Berjaya Securities JSC (SBBS) - a unit of Malaysia's Berjaya Corporation Bhd - told Reuters that if the ruling was upheld, she had little hope of recouping her bank's $10 million from the perpetrator, who was sentenced to life imprisonment. "We can't afford to lose the case. This represents 70 percent of our capital. Our business may get suspended," Josephine Yei said in an interview.

KUALA LUMPUR: Regional payment service provider GHL Systems Bhd is buying local rival Paysys (M) Sdn Bhd for RM80mil in cash and new shares, as the company seeks to boost its market share in the business.

“The proposed acquisition is expected to provide an opportunity to GHL and its subsidiaries to solidify their presence as a payment solutions provider in Malaysia,’ it said in a filing with Bursa Malaysia today.

Under the deal, GHL will pay RM40mil cash and issue RM40mil worth of new GHL shares to the owners of Paysys at an issue price of RM1.1927 each.

The new shares will be released in three tranches.

The first tranche of RM16mil worth new shares will be released after Paysys achieved a minimum profit after tax of RM6mil for the financial year ending Dec 31, 2018 (FY18).

The second tranche of RM12mil worth of new GHL shares will be released after the FY18 results were audited.

GHL said it will released the final tranche of RM12mil new shares to the sellers on condition that Paysys achieved a minimum profit after tax of RM8.5mil in FY19.

Paysys is principally involved in the credit card acquiring business, provision of terminals and payment solutions. The group’s customer base comprises mainly financial institutions.

“Barring any unforeseen circumstances, GHL believes that based on the abovementioned, the growing Malaysian economy and advancing e-payment sector, the proposed acquisition should contribute positively to GHL group,” it said.