MC Payment receives letter of intent from Indonesia's OY! for equity stake

INDONESIA-BASED payments and remittance company Dompet Harapan Bangsa (OY!) is looking to take a strategic equity stake in MC Payment, the latter said in a bourse filing on Thursday.

The digital payments services company on Wednesday received a letter of intent dated June 14 from OY! to explore investment opportunities.

OY! indicated that it intends to move towards a formal term sheet or memorandum of understanding agreement at the "soonest". However, MC Payment noted that the letter of intent does not constitute any legally binding obligations on either party.

OY! first started in 2017 as a chat app, before developing a payments system the following year. Some of its key investors include Softbank Ventures Asia, AC Ventures, Metra Digital Investama, Wavemaker, and Temasek's Pavilion Capital.

It is planning to work with MC Payment's associate MCP Indo Utama in the initial stage to establish a stronger foothold in Indonesia. Afterwards, it will leverage MC Payment's regional network to pursue expansion and collaboration opportunities.

MC Payment has a presence in Singapore, Malaysia, Indonesia and Thailand.

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Shares of Catalist-listed MC Payment closed at S$0.33 on Thursday, down S$0.01 or 2.9 per cent, before the filing.