Receipt of Letter of Intent from Indonesia’s OY! to Explore Investment Opportunities By Taking Strategic Equity Stake in MC Payment
- Receipt of Letter of Intent (“LOI”) from Indonesia-based payments and remittance firm, PT Dompet Harapan Bangsa (“OY!”), to explore investment opportunities by taking a strategic equity stake in MC Payment; OY! intends to turn the LOI into a term sheet or memorandum of agreement
- OY! identifies MC Payment to be “a best fit” to their expansion plan; LOI provides avenues for both parties to explore mutually beneficial investment opportunities together
- OY! intends to work with PT MCP Indo Utama (an associate of the Company) to establish a stronger foothold in the country in the initial phase • Next phase involves leveraging the Group’s regional network to pursue expansion and collaboration opportunities
SINGAPORE, June 17, 2021 – MC Payment Limited (SGX: TVV) (“MC Payment” or the“Company”, and together with its subsidiaries, the “Group”) is pleased to announce that it has, on 16 June 2021, received a Letter of Intent dated 14 June 2021 (“LOI”) from PT Dompet Harapan Bangsa (“OY!”), a payments and remittance company based in Indonesia, for OY! to explore investment opportunities by taking a strategic equity stake in the Company. Pursuant to the LOI, OY! indicated that it intends to move towards a formal term sheet or a memorandum of agreement “soonest”.
OY! has also identified MC Payment to be “a best fit” to their expansion plan. The LOI provides avenues for both parties to explore mutually beneficial investment opportunities together.
In the initial phase, OY! Intends to work with PT MCP Indo Utama (an associate of the Company) to establish a stronger foothold in the country, after which, it will leverage the Group’s regional network to pursue expansion and collaboration opportunities. Details of OY!’s proposed equity investment in MC Payment are not disclosed at this stage and the LOI does not constitute any legally binding obligations on the Company or OY!. The Company will rely on the LOI as a basis for further negotiations and exploratory talks with OY!.
OY!, established in 2017, first started as a chat app. The following year, it developed a payments system so that users could easily perform transactions on its platform. Since then, OY! has evolved into a seamless, easy-to-use collaborative payments provider, supporting hundreds of businesses across Indonesia. Some of OY!’s key investors include Softbank Ventures Asia, AC Ventures, PT Metra Digital Investama (MDI), Wavemaker, and Pavilion Capital, a subsidiary of Singapore state investment firm Temasek Holdings.
According to CEIC data, Indonesia has the second-largest currency in circulation in Southeast Asia – at an annualised US$1.5 trillion in 2020, behind Singapore’s US$2.3 trillion money in circulation.
Executive Director and Chief Executive Officer of MC Payment, Mr Anthony Koh, said: “We are honoured that OY! has expressed its intention to take a strategic interest in MC Payment, and we look forward to exploring collaboration opportunities with them in Indonesia, which is Southeast Asia’s largest economy. We are confident that this partnership, which will be extended to the rest of the region in the next phase, will usher in tremendous growth opportunities for both parties.”
Commenting on the partnership, OY!’s CEO, Mr Jesayas Ferdinandus, said: “We have identified MC Payment to be a best fit to our expansion plan, and it gives us great pleasure to sign this Letter of Intent to explore taking a strategic stake in MC Payment, with its fully integrated, online-to-offline suite of payment solutions and digital commerce enabling services. We look forward to a robust pipeline of collaboration opportunities as digital payments growth takes off in the region.”
With digital payments in ASEAN expected to triple to US$1.5 trillion (S$2 trillion) by 2030 , MC Payment believes it is well-placed to capitalise on this significant and growing market opportunity, given its established infrastructure and expanding geographical footprint. Asia also leads the growth in non-cash transactions globally, registering a five-year CAGR of 24% to US$244 billion in 2019, driven by its soaring Internet economy2. MC Payment is a Singapore-based, online-to-offline (O2O) financial services technology group, with a fully integrated platform and a focus on servicing merchants in the retail, transportation and food and beverage industries. Its wholly-owned subsidiary, MC Pay Pte. Ltd., which was established in 2005, holds a major payment institution licence in Singapore and is regulated by the Monetary Authority of Singapore under the Payment Services Act 2019. Currently, MC Payment has a presence in four countries – Singapore, Malaysia, Indonesia and Thailand – with ambitions to become a regional player.
Investor Relations and Media Contact:
Ms Loke Chunying
Mobile +65 9222 7687
This press release has been prepared by the Company and its contents have been reviewed by the Company’s sponsor, ZICO Capital Pte. Ltd. (the “Sponsor”), in accordance with Rule 226(2)(b) of the Singapore Exchange Securities Trading Limited (“SGXST”) Listing Manual Section B: Rules of Catalist.
This press release has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this press release, including the correctness of any of the statements or opinions made or reports contained in this press release.
The contact person for the Sponsor is Ms. Alice Ng, Director of Continuing Sponsorship, ZICO Capital Pte. Ltd. at 8 Robinson Road, #09-00 ASO Building, Singapore 048544, telephone (65) 6636 4201.