The acquisition has been made for a cash consideration of approximately $2 million.
PB Fintech said that it has made made an investment of approximately $2 million for acquiring 26.72% stake in YKNP Marketing Management, a limited liability company (LLC), through its wholly owned subsidiary PB Fintech FZ-LLC.
In August this year, the board of the company had approved the incorporation of a stepdown wholly owned subsidiary of PB Fintech FZ-LLC, a wholly owned subsidiary of the company in Abu Dhabi. The subsidiary, proposed to be named as PB Abu Dhabi Tech Co., was incorporated with the objective of extending Group's technology hub in UAE and providing end-to-end tech solutions.
The board had also approved an investment of $4 million (including rights issue) in the shares of YKNP Marketing Management (YKNP) through PB Fintech FZ-LLC. Accordingly, PB Fintech FZ-LLC would own 45% to 51% shareholding of YKNP.
YKNP Marketing Management is a leading provider of outsourced sales and marketing services for companies in the UAE. It mainly provides services like lead generation, sales consulting services, co-sourcing and sales outsourcing services to their clients. It has total three branches - one in Dubai, one in Abu Dhabi and one in Al Ain. The company had recorded turnover of AED 20.41 million for the year ended on 31 December 2021.
PB Fintech stated that post its investment of $2 million, YKNP has become an associate of PB Fintech FZ-LLC, a wholly owned subsidiary of the company and accordingly a related party.
The investment will provide PB Fintech FZ-LLC access to banks of UAE, where the company can start sourcing customer leveraging the YKNP agreement and field force.
Further, YKNP has about majority business through Arabic population. With this, PB Fintech will get access to sales team which can cater to Arabic customers.
PB Fintech is an integrated online marketing and consulting Company and is in the business of rendering online marketing and information technology consulting/support services largely for the financial service industry, including insurance.
The company reported consolidated net loss of Rs 186.64 crore in Q2 FY23 as compared to net loss of Rs 204.44 crore in Q2 FY22. Revenue from operations surged 105.1% to Rs 573.47 crore in Q2 FY23 as against Rs 279.85 crore in Q2 FY22.
The scrip advanced 7.99% ended at Rs 402.80 on Friday, 18 November 2022.
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