The Company signed agreement with JEMPOL kiosk (PT. MDU) to acquire its business
JAKARTA, Indonesia, June 12, 2018 /PRNewswire/ -- KinerjaPay Corp., (KPAY), a US-based mobile payment and digital eCommerce platform provider with its main market in Indonesia, announced today that it has signed a Memorandum of Understanding (MoU) agreement with PT. Mitra Distribusi Utama (MDU), a mobile prepaid top-up provider in Indonesia, to acquire MDU's business units as well as to prepare future expansion plan on its current business model. The combined businesses could exceed $70 million in sales in 2019.
MDU has been operating as mobile prepaid top-up data package provider for all telco operators in Indonesia since 2007. With its recent achievement of over $30 million sales in 2017, mainly in selling prepaid top-up balances and data plan for internet usage to Indonesia's ever growing mobile internet users, KinerjaPay Corp. is confident that MDU and PT. Kinerja Pay Indonesia (or KPI, its fully-owned Subsidiary based in Jakarta) will be able to grow the business stronger throughout the country.
This acquisition will also help improve KPI's operating income as it will be able to negotiate lower costs of mobile prepaid top-up rates, which will in turn make KPI to become more profitable in all its transactions, especially in mobile prepaid top-up and data plan packages. Together, with current KPI's average transaction of around 200,000 transactions quarterly and MDU's average of 2,000,000 transactions quarterly, this merger will transform KPI into one of the leading mobile prepaid and data plan distribution companies in the country.
By signing the Memorandum of Understanding, both parties agree to start the Due Diligence process, which is expected to last for two months, starting from June 11th, 2018, and agree to share available resources and data pertinent to MDU's performance. MDU's current Executive, Mr. Harimin Ginoto, has also agreed to stay as being MDU's executive for the next 12 months after completion of the takeover, to help monitor and grow the business to achieve KinerjaPay's targeted over $70 million in sales.
Details of the exact purchase price will be released after the finalization of the due diligence process. According to Mr. Edwin W. Ng, Chairman and CEO of KinerjaPay Corp., "This is the moment we are all waiting for, KinerjaPay will transform into a major player in Indonesia's mobile prepaid top-up industry". The Company's CEO of PT. Kinerja Pay Indonesia, Mr. Deddy Oktomeo, also commented, "Achieving the transaction level of over 2 million transactions quarterly will allow KPI to achieve significant profitability as well as reach a sales level of over $70 million per year. We fully expect to migrate these users to all other KinerjaPay product offerings and allow significant growth beyond 2019".
KinerjaPay enables consumers to "Pay, Play and Buy" through its secure web portal and mobile applications. Based in Indonesia, the Company provides easy and convenient payment solution while shopping online at its marketplace platform. With its current omni-channel platform, users can perform various payment services such as credit card bill payment, utility, phone bill, healthcare insurance and direct transfer to anyone at their convenience. KinerjaPay is also planning to launch other eCommerce verticals such as travel market, delivery services, and online gaming in the near future. The Company's services are available through its mobile applications and on its website at www.kinerjapay.com.
Notice Regarding Forward-Looking Statements
This press release may contain forward-looking statements, about KPAY's expectations, beliefs or intentions regarding, among other things, its product development efforts, business, financial condition, results of operations, strategies or prospects. In addition, from time to time, KPAY or its representatives have made or may make forward-looking statements, orally or in writing. Forward-looking statements can be identified by the use of forward-looking words such as "believe," "expect," "intend," "plan," "may," "should" or "anticipate" or their negatives or other variations of these words or other comparable words or by the fact that these statements do not relate strictly to historical or current matters. These forward-looking statements may be included in, but are not limited to, various filings made by KPAY with the U.S. Securities and Exchange Commission, press releases or oral statements made by or with the approval of one of KPAY's authorized executive officers. Forward-looking statements relate to anticipated or expected events, activities, trends or results as of the date they are made. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause KPAY's actual results to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause KPAY 's actual activities or results to differ materially from the activities and results anticipated in such forward-looking statements, including, but not limited to, the factors summarized in KPAY 's filings with the SEC. In addition, KPAY operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond its control. KPAY does not undertake any obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise. Please see the risk factors associated with an investment in our securities which are included in our Annual Report on Form 10-K as filed with the U.S. Securities and Exchange Commission on February 11, 2016.
For more information, please visit our website http://www.kinerjapay.co. There you will find access to all of our past press releases and SEC filings regarding the activities discussed in this letter.
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