Sedania Innovator to buy fintech company for RM12m

PETALING JAYA: Sedania Innovator Bhd proposes to acquire a syariah-based financial technology company for RM12 million.

In a statement last Friday, the company said since 2010, the fintech company Sedania As Salam Capital has been providing As-Sidq, a Tawarruq commodity trading system that uses prepaid telecommunication airtime credit as the traded commodity based on syariah principles.

The electronic and fully-automated As-Sidq system is currently used by 21 financial services companies in Malaysia, including financial institutions and cooperatives, to facilitate Islamic financing to customers.

Sedania said the purchase sum will be satisfied via RM4 million cash while the remaining RM8 million via the issuance of 25.8 million new Sedania shares at an issue price of 31 sen per share.

Sedania As Salam Capital will provide a profit guarantee of RM1.5 million per year for the financial years ending Dec 31, 2017 and 2018.