6th Sept 2011. e-Pay Asia (ASX:EPY) has received a fourth (and likely final) buyout offer, from Euronet Worldwide for A$12 million, topping the most recent bid received from rival Tobikiri Capital. Tobikiri Pacital is a company controlled by Mr Simon Loh, Executive Chairman and Chief Executive Officer of e-Pay.
In May 2010, e-Pay Asia called off a deal to sell its business interests for $7 million and a return to shareholders of 17 cents per share. In April 2011, e-Pay Asia had provisionally accepted an A$8.5m bid from Tobikiri Capital, but Euronet then offered $10m. In July, Tobikiri agreed to match this offer, and the companies were working towards a revised sale agreement until Euronet increased its bid to $12 million.
Tobikiri has advised the Company that it has no intention to match Euronet’s revised offer, and that it is willing to work with the Company to terminate the share sale agreement. The independent directors have resolved to terminate the existing Tobikiri share sale agreement.
e-Pay recently released financial results for the 6 months to 30th June 2011. The Group revenue was $5.0m (2010: $5.0m) with EBITDA of $1.6m (2010: $2.3m).
Euronet’s offer is conditional on due diligence and shareholder approval.
About e-Pay Asia
e-pay Asia Limited (“EPY”) is a pioneer electronic payment service provider in South East Asia and is listed on ASX. The EPY electronic top-up service was first launched in Malaysia in 1999 with one mobile operator to address inefficiencies in top-up payment options for the fast growing prepaid mobile market and was the first to offer pre-paid mobile phone users an electronic top-up option, as an alternative to physical scratch-off cards.
EPY buys prepaid airtime directly from the mobile operators at a discount retail price and distribute it electronically to consumers via its network of authorised Channels. There are approximately 15,000 Channels offering e-pay’s electronic reload services comprising of more than 15,000 Terminal. On an annual basis, EPY through its Retail Agents processes more than 100 million top-up transactions.
e-Pay Asia was previously known as SkyNetGlobal Limited and was in the broadband telecommunications business. On 17 November 2005, the shareholders of the Company approved the acquisition of e-pay, the change of name to e-pay Asia Limited and the nature of its activities to become an electronic payments business in the Southeast Asian region.