New | Mobile distributor SiS to spin off e-payments subsidiary in Bangladesh
Mobile devices distributor SiS International Holdings plans to spin off its electronic payment services business in Bangladesh, Information Technology Consultants Limited (ITCL).In its regulatory filing on Thursday, SiS said its subsidiary will be separately listed on the Dhaka Stock Exchange and the Chittagong Stock Exchange in Bangladesh.
“The proposed spin-off and listing will provide ITCL with a separate platform for raising funds from both equity and debt capital markets,” SiS said. “ITCL will also have access to bank financing on potentially more advantageous terms than are presently available to it.”
The company expected to retain a 37.60 per cent interest in ITCL after the listing is completed. It currently owns a 43.60 per cent stake.
Lim Kiah Meng, the vice-chairman at SiS, held 9.80 per cent of the shares in ITCL through a related corporation.
SiS is one of the largest distributors of mobile devices, such as smartphones, with a large reseller network that covers Hong Kong, Singapore, Thailand, Indonesia and the Philippines.
It has investments in selected properties consisting of hotel, commercial, industrial and residential properties in Hong Kong, Singapore and Japan.
Headquartered in Quarry Bay, SiS posted an 11 per cent increase in interim net profit to HK$34.54 million from HK$31.08 million a year earlier.
Total revenue grew 36 per cent to HK$1.03 billion from HK$754 million the previous year.
In 2010, SiS sold its core information technology distribution business for US$130 million in cash to Jardine OneSolution, part of London-listed trading conglomerate Jardine Matheson Group.
That deal helped transform JOS into one of the biggest information technology services companies in Asia, with the addition of SiS’ former operations in Hong Kong, Singapore and Malaysia.
