A well diversified company involved in various sectors including investment, securities, technology, agriculture and F&B, Fintec Global has surely been active in the markets when it announced that it had acquired 96,719,200 shares of NetX Holdings Berhd, representing 11.57% equity stake worth approximately RM14million.
NETX is a public listed technology company on ACE Market which started off dealing primarily with the supply of network equipment and infrastructure. Currently the company is involved in disruptive tech like digital platforms, e-payment solutions, e-commerce and IT infrastructure. The company focuses on three key business pillars thats operated through its subsidiaries, Ariantec a network equipment and infrastructure specialist, GEM Pay a payment solutions company which it acquired in 2015 and GEM Live, a lifestyle technology company specialising in digital application for the F&B, entertainment and events sector.
The strategic purchase is to strengthen the portfolio of FINTEC as it views NETX initiatives are expected to further improve or enhance future earnings and financial position for the company. With a cash pile of RM81.40 million, NETX will be using some of the proceeds to market GemSpot and GemSpot Life (approximately RM25mil), working capital (approximately RM17mil) and acquisition/investment/partnerships in other complementary businesses (approximately RM25 mil).
Leveraging on the network of merchants comprising F&B outlets and event organisers, NETX intends to develop a F&B e-commerce platform which will be integrated with GemSpot and GemSpot Life to connect event organisers to event venue space providers. The company is also looking to develop a micro finance service to small and medium enterprises and general public.
According to Fintec, the acquisition will be synergistic to its agricultural fertiliser business as well as its recently introduced glove business as it will be able to leverage NETX expertise and experience in operating its e-commerce ecosystem with epayment gateway and financial assistance services.
