ATM and electronic banking services provider iCash Payment Systems (ASX:ICP) has arranged a $33.9 million deal to increase its stake in Korean subsidiary, Neo ICP Korea, to nearly 90%.
The company has agreed to pay a number of vendors a total of $10 million in cash and 48.4 million iCash shares at 49.5 cents per share. This represents around 34.4% of the company's issued capital.
The deal is contingent on iCash securing acceptable financing terms or completing a capital raising, and receiving shareholder approval.
If it proceeds, the transaction will take the company's interest in NeoICP to 88.2%, from the current 47.1%. The company bought a 4.7% stake in the subsidiary for $3.91 million worth of shares in November.
iCash also flagged plans to acquire the remaining share capital in the subsidiary “as soon as reasonably practicable.”
iCash executive chairman James Manny said the full acquisition of NeoICP will “deliver a greater concentration of leadership, closer alignment of...operational structures and the ability to focus more effectively on major infrastructure-type transactions in Australia, Korea and elsewhere in [APAC].”
NeoICP CEO JS Kang also foreshadowed international expansion, stating that a closer co-operation “will allow us to more effectively pursue growth in the high cash dependent economies of Asia.”
ICP shares grew 5.66% in Wednesday's trading to $0.280.