PUC to invest RM90mil in 11Street

KUALA LUMPUR: PUC Bhd has agreed to invest up to RM90mil in 11Street Malaysia in a deal that would give the media and advertising firm management control of the e-commerce platform.

The investment values 11Street Malaysia as much as RM375mil.

PUC, in a filing with Bursa Malaysia today, said it had entered into a termsheet Celcom Planet Sdn Bhd, Axiata Digital Services Sdn Bhd (ADS) and SK Planet Global Holdings Pte Ltd (SKP) for the proposed deal.

Celcom Planet is a joint venture between ADS and SKP, which owns and operates the 11Street Malaysia e-commerce platform.

“The investment paves the way for the company to increase potential revenue streams in advertising and media, and financial services from the synergistic collaboration for the company and its subsidiaries,” PUC said.

The company, which operates its own social marketing and e-wallet platform known as Presto, said it expects to benefit from 11Street Malaysia’s e-commerce infrastructure, and cross markets its services to the consumer and merchant base of 11Street Malaysia.

Under the deal, PUC will invest up to RM90mil in 11Street Malaysia in five tranches.

The first RM40mil will be invested in four stages between now and end of July this year.

The remaining RM50mil investment would be subjected to the approval of its shareholders. PUC said it expects to obtain the greenlight before end of August.

Assuming that PUC reached its investment target, it would end up with as much as 24% stake in 11Street Malaysia, with ADS holding 37% and SKP at 39%.

“The investment amount translates to an implied valuation of 100% equity interest in CPSB ranging from RM333.33mil to RM375mil,” PUC said.

Post signing of the definitive agreements, PUC will have the right to nominate and appoint the chief executive officer and chief marketing officer at 11Street Malaysia.

From 2015 to 2017, 11Street Malaysia reported an achievement of more than 300% growth in gross merchandising value (GMV), 160% growth to over 13 million product listings, and 200% increase to 40,000 sellers registered on its platform.

As of Dec 31, 2017 11Street Malaysia recorded a GMV of approximately RM427mil and total monthly unique visitors (UV) of 13.5 million for the month of December 2017.