ConnectCounty Holdings buys 51% stake in MyGenBizz - Business News | The Star Online
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ConnectCounty buying 51% stake in MyGenBizz, which owns exclusive marketing rights in M'sia for MyBrandApp from GenBizz
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Big telco stake sale in Malaysia Bank Negara says 35 years housing loan tenure sufficient Plan to redevelop Raintree Club Tenaga serves winding-up petitions on Perwaja Steel Apple's iPhone 7 more expensive to makeKUALA LUMPUR: ACE Market-listed company ConnectCounty Holdings Bhd (CHB) is buying a 51% stake in MyGenBizz Bhd (MGB) for RM1mil cash.
The company paid 20% of the money or RM200,000 yesterday with the balance to be settled upon completion of the acquisition. It will pay with internally-generated funds and borrowings.
Post acquisition, CHB would own a majority stake in MGB while its founder Steve Tan See Kuy (pic) will hold the remainder 49% stake or 49,000 shares in MGB.
"The purchase consideration represents a premium of RM900,000 over the shareholders’ fund of MGB of RM100,000 as at Jan 20, 2014," CHB said in a statement yesterday.
MGB owns the exclusive marketing rights in Malaysia for MyBrandApp from GenBizz Inc.
The MyBrandApp has 70 functions for a person to personalise his or her brand or image digitally by consolidating Facebook, Twitter, GMail, YouTube and other mobile application features on one’s personalised page.
CHB said that factors for the acquisition included the huge resources to develop a similar personal mobile application running on both the Android and iOS platforms which were ready for commercialisation and the prospects of immediate commercialisation of the MyBrandApp in Malaysia.
Other factors were the perpetual exclusive marketing rights, tech support and the right to market future MyBrandApp platforms or applications agreement between MGB and GenBizz Inc and the industry experience of MGB’s key management staff, namely its vendor Steve Tan.
CHB chairman Datuk Norazman Haji Hamidun said in his speech that the agreement would allow the company to promote a personal mobile app with 70 features and functions.
CEO Lai Soon Yip said in a press conference that he expected a revenue contribution of 40% to its overall contribution in the first year of MGB’s operations after the app was launched by March or April of this year.
"Post the acquisition, the operations of MGB would be run by Tan including MGB chairman Khalid Husni Ahmad Hanadzlah.
Tan said he expected the MyBrandApp to reach 50,000 users this year and over half a million next year due to the vast market potential of Malaysians being involved in the direct selling and insurance industries.
