KUALA LUMPUR: Merchantrade Asia Sdn Bhd, which is 20 per cent owned by Celcom Axiata Bhd, is buying 49 per cent stake in Kliq Pte Ltd from M1 Ltd for S$2.57 million.
M1, which is controlled by Axiata Group Bhd, fully owns Kliq.
“This partnership with Kliq underscores Merchantrade's business direction to have a stronger foothold outside Malaysian shores as this is our first step to tap into Asia Pacific,” said Merchantade founder and managing director Ramasamy K. Veeran.
Kliq operates M1's mobile remittance service which was launched in Singapore in April 2017.
M1, in a statement yesterday, said it would be increasing its investment in the capital of Kliq from S$100,000 to S$2.55 million by subscribing for additional shares.
At the same time, M1 said it is reducing its stake in Kliq to 51 per cent.
Monetary Authority of Singapore has approved of M1's 49 per cent stake sale in Kliq to Merchantade.
“Currently, Singapore also has a larger size of foreign worker population as well as Malaysians working there," said Ramasamy
"There is a strong requirement for outbound remittance from Singapore to send money back home especially in the digital mobile remittance space,” he added.
Currently, Merchantrade has 83 money services branches, two wholesale hubs and more than 400 agents across Malaysia.
Its remittance network spreads across 234,000 pay-out points in more than 180 countries worldwide.