PUC to invest 90m ringgit in 11Street

ASEAN+ April 21, 2018 01:00

By THE STAR
ASIA NEWS NETWORK
KUALA LUMPUR

MALAYSIA’S PUC Bhd has agreed to invest up to 90 million ringgit 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 375 million ringgit.

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 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 90 million ringgit in 11Street Malaysia in five tranches.

The first 40 million ringgit will be invested in four stages between now and end of July this year.

The remaining 50 million ringgit investment would be subjected to the approval of the company’s 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 per cent stake in 11Street Malaysia, with ADS holding 37 per cent and SKP at per cent.

“The investment amount translates to an implied valuation of 100 per cent equity interest in CPSB ranging from 333.33 million to 375 million ringgit,” PUC said.

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

 

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