MDR unit to enter mobile virtual network operator business in July

A UNIT of MDR Limited, an after-market service provider for consumer mobile products, will enter the mobile virtual network operator (MVNO) business in early July.

It will offer its MVNO services in Singapore under the trade name ZYM Mobile. Products offered include SIM plans, both with and without contract, as well as various bundled products with handsets and other "value-added services", said MDR in a regulatory filing on Thursday.

The group's venture into the MVNO business will enhance and complete its value chain to better serve customers, thereby expanding its revenue stream as well, said its group chief executive officer Frankie Ong.

On May 17 this year, MDR agreed to loan MKY Capital S$24 million over a 12-month tenor. The loan is secured by an all-monies mortgage over a property at 8 Devonshire Road, which has an indicative valuation of S$32-35 million.

This is in addition to other securities that include a personal guarantee by directors and shareholders of MKY, MDR's right to purchase the mortgage property in the event of a default of the loan agreement, and a share pledge agreement.

MDR in its announcement said that its loan to MKY was income-generating and beneficial for the group.

Shares of MDR closed flat at 7.7 Singapore cents on Thursday.