PETALING JAYA (April 15): Paramount Corp Bhd is investing in a peer-to-peer (P2P) financing platform by acquiring a 30% stake in Omegaxis Sdn Bhd for RM13.7 million.
In a media statement on April 15, the company said its wholly owned subsidiary Magna Intelligent Sdn Bhd (MISB) is investing in a peer-to-peer (P2P) financing platform as its entry point into the fintech sector.
MISB signed a conditional share subscription agreement with P2P Venture Sdn Bhd (P2P Venture) and Omegaxis Sdn Bhd (Omegaxis) for a 30% equity interest in Omegaxis at a total cash consideration of RM13.7 million.
The proposed investment is expected to be completed by the end of second quarter this year after receiving the relevant approvals.
Omegaxis is a special purpose vehicle set up to facilitate Paramount’s proposed investment in P2P financing platforms in collaboration with P2P Venture with a 30:70 ownership structure.
Paramount’s proposed investment is in line with its five-year (2020-2024) strategic plan to identify new sources of earnings, particularly those in the digital space, after the divestment of its education business.
“Venturing into digital space is to future proof the Paramount group for long term sustainability. In this respect, Paramount, through MISB, has also invested in Openlearning Limited, an Australian edutech which operates an online education platform for tertiary education institutions, and is now listed on the Australian Securities Exchange,” said the company.
The proposed investment will also serve as a strategic alliance to pave the way for other business opportunities in the digital space, including applying to Bank Negara Malaysia for a digital banking licence that Paramount is exploring.
Upon the completion of the transaction, Omegaxis will have a 63.5% equity interest in Peoplender Sdn Bhd (Peoplender), whose subsidiary Fundaztic SG Pte Ltd (Fundaztic Singapore) has received approval from the Monetary Authority of Singapore to operate a P2P financing platform in Singapore but has yet to launch.
The proposed investment is a related party transaction in which the executive directors of Paramount have interest but have abstained from all deliberation and voting on the matter at the board meetings of Paramount and MISB.
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