Increasing its value added services portfolio, M1 Limited announced on Tuesday that its wholly owned subsidiary M1 TeliNet has signed an investment agreement worth S$3 million ($2.2 million). The deal was signed with Singapore based Eleos Web and Octopus Retail Management (ORM), and their shareholders.
Eleos is an established provider of mPOS (mobile point-of-sale) solutions to retailers and food and beverages (F&B) outlets. Its Octopus Retail Solution, uses smart devices to manage customer orders, payments, inventory and for reporting.
The Octopus Retail Solution will be operated by ORM, an SPV incorporated by Eleos’ shareholders in June 2016 for the purpose of this investment.
Subject to the satisfaction of completion conditions by Eleos, ORM and its shareholders, M1 TeliNet has agreed to acquire 3,000,000 new ordinary shares to be issued by ORM. M1 TeliNet will own 30% of the share capital of ORM, post-acquisition.
The acquisition price has been arrived at following arms’ length negotiations and taking into account ORM’s assets, intellectual property, financial position and business prospects. This acquisition is funded internally by cash and is not expected to have a material effect on net assets or earnings per share of M1 group for the financial year ending in Dec 2016.
M1 is Singapore’s one of the top three telecoms, providing mobile and fixed services to over 2 million customers.