Malaysia-based telco Redtone International said that two new individual shareholders, Teh Beng Hock and Tee Yew Yaw, have joined its MVNO unit Redtone Mobile.
Redtone CEO Lau Bik Soon stated that having new shareholders in Redtone Mobile would help…
Malaysia-based telco Redtone International said that two new individual shareholders, Teh Beng Hock and Tee Yew Yaw, have joined its MVNO unit Redtone Mobile.
Redtone CEO Lau Bik Soon stated that having new shareholders in Redtone Mobile would help its MVNO services become more appealing.
Under the share sale agreement, Teh and Tee are expected to each own a 32.5% stake in the MVNO. As a result, Redtone Technology, a wholly-owned subsidiary of Redtone, will see its shareholding in the Redtone Mobile reduced from 100% to 35%.
The current issued and paid-up share capital of Redtone Mobile is MR500,000 (US$159,000). The new shareholders will together subscribe for 350,000 ordinary shares at MR1 (US$0.32) each, increasing the capital to MR850,000 (US$270,400).
The company also said that Redtone Mobile will repay Redtone Technology a net outstanding advance of MR1.9m (US$604,500).
“The move to bring in new shareholders for Redtone Mobile is part of Redtone’s business rationalisation strategy as the group seeks to focus on businesses where it’s strong in,” according to the statement.
“Teh and Tee are shareholders of Elepoint, the largest Celcom re-seller for the corporate segment in Malaysia.”
Mobile operator Celcom owns a network used by Redtone Mobile to offer mobile services, mainly to the SME sector.
A new CEO as well as a new management team for Redtone Mobile are expected to be appointed soon.
