Aspial Lifestyle to buy 65% stake in Malaysian pawnbroker for RM30.7m

PAWNSHOP owner and jewellery retailer Aspial Lifestyle is expanding its operations in Malaysia with the acquisition of 65 per cent of pawnbroking business Maxion Holdings for RM30.7 million (S$9.5 million).

The deal, which remains subject to certain conditions, also includes a put option for Aspial to acquire the rest of Maxion Holdings. Aspial may exercise this option between Jan 1, 2027 and Dec 31, 2032, but will not be required to buy more than 10 per cent of Maxion in a year.

In an announcement on Dec 1, Aspial said it expects the acquisition to be accretive to its financial results.

For FY2022 ended Sep 30, the net profit attributable to the stake in Maxion would have been RM4.6 million. As at end-September, the 65 per cent stake had a book value of RM19.3 million.

Assuming the proposed acquisition had been completed on Jan 1, 2021, Aspial’s earnings per share for FY2021 ended Dec 31 would have improved to 1.45 Singapore cents from 1.4 Singapore cents.

Aspial was formerly known as Maxi-Cash Financial Services Corporation and operated a chain of pawnbrokers under the Maxi-Cash brand. The company changed its name in October after it acquired several businesses, including jewellery brand Lee Hwa Jewellery, from its parent company Aspial Corporation : A30 0%.

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Maxi-Cash already operates pawnbroking outlets in Johor and Selangor. Aspial therefore believes the proposed acquisition will “strengthen its presence in Malaysia and provide opportunities for the group to grow by enhancing its local network and customer base”.

Maxion owns the Pajak Gadai Ion pawn shop in Malaysia.

Aspial intends to fund the purchase with existing cash and bank borrowings.

Shares of Aspial Lifestyle : 5UF 0% closed flat at S$0.159 on Thursday before the announcement.