MC Payment shares gained as much as 21.2% after news on the morning of June 18, after it announced the evening before that it has received a letter of intent from an Indonesian payments and remittance company PT Dompet Harapan Bangsa, trading under the brand name OY!, to explore the possibility of taking an equity stake in itself.
According to MC Payment, key OY! investors include Softbank Ventures Asia, AC Ventures, PT Metra Digital Investama, Wavemaker, and Temasek subsidiary Pavilion Capital.
In a late June 17 announcement via SGX, MC Payment said the letter of intent was dated June 14 and it received the letter on June 16.
OY! has indicated it intends to move towards a formal term sheet or a memorandum of agreement “soonest”.
The two parties will in the meantime explore mutually beneficial investment opportunities together. For a start, OY! plans to work with PT MCP Indo Utama, an Indonesia-based associate of MC Payment, and subsequently, move to other markets in the region.
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!.
“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,” says Anthony Koh, CEO of MC Payment.
See also: MC Payment's board tussle pits its chairman and CEO against Oxley's Ching
“We look forward to a robust pipeline of collaboration opportunities as digital payments growth takes off in the region,” says OY!’s CEO Jesayas Ferdinandus.
MC Payment is earlier in the news for a dispute among shareholders. Its single largest shareholder, Ching Chiat Kwong, better known as executive chairman of Oxley Holdings, has called for an EGM to install himself and other linked parties to MC Payment’s board.
Ching made this move after his son Shawn, representing him on MC Payment’s board, was not re-elected as a director at the company’s recent AGM.
MC Payment shares, as at 10 am on June 18, was done at 37.5 cents, up 13.64%.
