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Jaya to acquire Papua New Guinea personal loans firm in S$232m RTO deal

MAINBOARD-LISTED Jaya Holdings has agreed to acquire Heduru Moni, a personal and consumer finance company from Papua New Guinea, in a reverse takeover (RTO) deal worth up to S$232.2 million, it said in a Singapore Exchange (SGX) filing on Wednesday.

The injection of Heduru Moni's business into the listed shell will let Jaya shareholders "venture into a new business area with a proven profitable track record and that has potential for growth", Jaya said in its statement.

Heduru Moni, also known as Moni Plus, has been licensed as a financial institution by the Bank of Papua New Guinea since 2006, Jaya noted, adding Heduru Moni had made a net profit of S$11.4 million in FY2013, S$13.9 million in FY2014 and S$19.4 million in FY2015 based on an exchange rate of S$0.43 to one Papua New Guinea kina.

David Kelso, Heduru Moni's managing director, said in the statement that listing on the SGX mainboard would "enhance our profile".

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To pay for its purchase of Heduru Moni, Jaya will issue Heduru Moni's owners up to 725.6 million Jaya shares at S$0.32 apiece on a pre-consolidation basis, it said.

The RTO is subject to conditions including a valuation report on Heduru Moni and regulatory approvals.

Jaya shareholders will also be entitled to a cash distribution of up to S$0.38 per ordinary share prior to the completion of the RTO, whether via dividend or capital reduction, subject to shareholder approval, Jaya said.

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