PUC's new unit to hunt for e-commerce opportunities
By Erika Benjamin | 2018-04-13 17:40:07 KUALA LUMPUR (April 13): PUC Bhd has incorporated a wholly-owned subsidiary in Malaysia, PUC Ventures Sdn Bhd, which will identify opportunities to invest in or acquire equity interests in companies that are principally involved in electronic commerce (e-commerce) businesses.
The new unit will also look at strategic alliances or joint ventures.
The other target segments include electronic payment services, financial services, technological services, and related businesses including but not limited to media services, airline and accommodation services, which are synergistic and complementary to the existing businesses of PUC and its subsidiaries.
In a filing with Bursa Malaysia today, PUC said at this juncture, PUC Ventures has not entered into any definitive agreement for involvement in the target segments.
"As and when any definitive agreement is signed by PUC Ventures for involvement in the target segments, relevant announcements will be made," it added.
At 4.59pm, PUC shares were down 0.5 or 1.89% at 26 sen, with 16.39 million shares done, bringing a market capitalisation of RM400.78 million.
The above stated news will be a spark sooner. Expect something towards the end of the coming week.
KUALA LUMPUR: PUC Bhd has agreed to invest up to RM90mil in 11Street Malaysia in a deal that would give the media and advertising firm management control of the e-commerce platform.
The investment values 11Street Malaysia as much as RM375mil.
PUC, in a filing with Bursa Malaysia today, said it had entered into a termsheet Celcom Planet Sdn Bhd, Axiata Digital Services Sdn Bhd (ADS) and SK Planet Global Holdings Pte Ltd (SKP) for the proposed deal.
Celcom Planet is a joint venture between ADS and SKP, which owns and operates the 11Street Malaysia e-commerce platform.
“The investment paves the way for the company to increase potential revenue streams in advertising and media, and financial services from the synergistic collaboration for the company and its subsidiaries,” PUC said.
The company, which operates its own social marketing and e-wallet platform known as Presto, said it expects to benefit from 11Street Malaysia’s e-commerce infrastructure, and cross markets its services to the consumer and merchant base of 11Street Malaysia.
Under the deal, PUC will invest up to RM90mil in 11Street Malaysia in five tranches.
The first RM40mil will be invested in four stages between now and end of July this year.
The remaining RM50mil investment would be subjected to the approval of its shareholders. PUC said it expects to obtain the greenlight before end of August.
Assuming that PUC reached its investment target, it would end up with as much as 24% stake in 11Street Malaysia, with ADS holding 37% and SKP at 39%.
“The investment amount translates to an implied valuation of 100% equity interest in CPSB ranging from RM333.33mil to RM375mil,” PUC said.
Post signing of the definitive agreements, PUC will have the right to nominate and appoint the chief executive officer and chief marketing officer at 11Street Malaysia.
From 2015 to 2017, 11Street Malaysia reported an achievement of more than 300% growth in gross merchandising value (GMV), 160% growth to over 13 million product listings, and 200% increase to 40,000 sellers registered on its platform.
As of Dec 31, 2017 11Street Malaysia recorded a GMV of approximately RM427mil and total monthly unique visitors (UV) of 13.5 million for the month of December 2017.
I agree with you Ran. Im sticking to PUC. Let it grow steadily. But tomorrows news should see it go to 30c. Notice how the whole of march the average volume has increased.
Good to see PUC has the right to appoint the CEO for 11 Street, great news. I would assume this isn't the only company the new E-commerce unit will be buying or having JV with. IMO this is only the start of PUC entering the ecommerce space.
When the PW deal gets done PUC will have solid revenue each year too. Great long term company.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
真有钱 ^_^
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Posted by 真有钱 ^_^ > 2018-04-13 14:41 | Report Abuse
26 cent Drop 0.5 cent, touch 0.255 soon.