REDtone International Bhd (REDtone) unit, REDtone Technology Sdn Bhd, has sold 65 per cent of its equity in REDtone Mobile Sdn Bhd (REDtone Mobile) to Teh Beng Hock and Tee Yew Yaw.
REDtone said the move to bring in new shareholders for REDtone Mobile, which offers Mobile Virtual Network Operator (MVNO) services, was part of its business rationalisation strategy as the group wanted to focus in businesses it was strong in.
Teh and Tee are shareholders of Elepoint Sdn Bhd, the largest Celcom re-seller for the corporate segment in Malaysia.
Chief executive officer Lau Bik Soon said new shareholders for REDtone Mobile were necessary to sharpen the company's focus and competitive advantage to make its MVNO services more appealing.
"Teh and Tee have more than 15 years experience and a deep understanding of the mobile business in the country. Together with REDtone's expertise in the small-and medium-sized enterprise segment, we believe it is a strong partnership
that will be able to take the company to a new growth level.
"The new REDtone Mobile will be more vibrant with better distribution channels to extend the reach of its services, and with more appealing offerings," he said, adding that REDtone expects to be profitable, moving forward.
He also said a new management would take over REDtone Mobile with immediate effect.
"A new and highly-experienced CEO will also come on board to run the company. We will now be able to better focus on growing our data and broadband business. We expect it to be the major contributor to the group's profit and revenue in financial year 2012," he said in a statement.
As an MVNO, REDtone Mobile rides on Celcom's digital network to offer mobile services to its customers who are primarily from the SME segment.
Besides divesting its stake in the mobile business, REDtone has put in place numerous other initiatives to strengthen its performance and turn the group around into a profitable entity.
These include further growing its profitable data and broadband business, working with other telecommunication service providers on joint projects that can leverage on its strength as a WiFi network builder and commercialising its proprietary technologies.
Meanwhile, in China, where its Shanghai operations were doing well, REDtone is considering expanding its customer loyalty pre-paid card business, he added. -- BERNAMA
REDtone said the move to bring in new shareholders for REDtone Mobile, which offers Mobile Virtual Network Operator (MVNO) services, was part of its business rationalisation strategy as the group wanted to focus in businesses it was strong in.
Teh and Tee are shareholders of Elepoint Sdn Bhd, the largest Celcom re-seller for the corporate segment in Malaysia.
Chief executive officer Lau Bik Soon said new shareholders for REDtone Mobile were necessary to sharpen the company's focus and competitive advantage to make its MVNO services more appealing.
"Teh and Tee have more than 15 years experience and a deep understanding of the mobile business in the country. Together with REDtone's expertise in the small-and medium-sized enterprise segment, we believe it is a strong partnership
that will be able to take the company to a new growth level.
"The new REDtone Mobile will be more vibrant with better distribution channels to extend the reach of its services, and with more appealing offerings," he said, adding that REDtone expects to be profitable, moving forward.
He also said a new management would take over REDtone Mobile with immediate effect.
"A new and highly-experienced CEO will also come on board to run the company. We will now be able to better focus on growing our data and broadband business. We expect it to be the major contributor to the group's profit and revenue in financial year 2012," he said in a statement.
As an MVNO, REDtone Mobile rides on Celcom's digital network to offer mobile services to its customers who are primarily from the SME segment.
Besides divesting its stake in the mobile business, REDtone has put in place numerous other initiatives to strengthen its performance and turn the group around into a profitable entity.
These include further growing its profitable data and broadband business, working with other telecommunication service providers on joint projects that can leverage on its strength as a WiFi network builder and commercialising its proprietary technologies.
Meanwhile, in China, where its Shanghai operations were doing well, REDtone is considering expanding its customer loyalty pre-paid card business, he added. -- BERNAMA
