KUALA LUMPUR : REDtone International Bhd has disposed a 65% stake in REDtone Mobile Sdn Bhd to two individuals for a token RM1 sum as part of a rationalisation exercise to improve the performance of its loss-making unit and free it to focus resources on other businesses.
In a statement yesterday, REDtone International chief executive officer Lau Bik Soon said Teh Beng Hock and Tee Yew Yaw will each hold 32.5% in REDtone Mobile, its Mobile Virtual Network Operator (MVNO) arm. REDtone Mobile would benefit from the entry of Teh and Tee who also own Elepoint Sdn Bhd, the largest reseller for mobile operator Celcom Axiata Bhd within the corporate segment in Malaysia.
“Teh and Tee have more than 15 years of experience and a deep understanding of the mobile business in the country. Together with REDtone’s expertise in the SMB/SME (small and medium-sized business/small and medium-sized enterprise) segment, we believe it’s a strong partnership that will be able to take the company to a new level of growth,” Lau said in the emailed statement.
In its statement to Bursa Malaysia, REDtone said Teh and Tee would be injecting RM350,000 into REDtone Mobile, which had RM2.63 million net liabilities and RM3.16 million net loss for FY ended May 31, 2011. REDtone Mobile will pay REDtone Technology Sdn Bhd RM10,000 a month for support services, research & development as well as customer billing services.
“The ‘new’ REDtone Mobile will be more vibrant with better distribution channels to extend the reach of its services, and with more appealing offerings,” Lau said. Following the share sale, REDtone International will still own 35% of REDtone Mobile, which does not own its own network but offers mobile phone services by leasing network capacity from mobile operators like Celcom.
REDtone, whose clientele is mainly from the SME segment, launched its MVNO services in 2009 and had invested some RM3 million into the business, the company said.
Lau said the new shareholders will help loss-making REDtone International improve the prospects of its data and broadband operations which is seen as a major contributor to the company’s financials in the year ending May 31, 2012.
In financial year ended May 31, 2011, REDtone International’s net loss widened to RM11.72 million compared with a net loss of RM5.41 million a year ago.
Besides divesting its stake in the mobile business, Lau said REDtone International has also put in place other initiatives to reverse its fortunes.
This article appeared in The Edge Financial Daily, January 4, 2012.
In a statement yesterday, REDtone International chief executive officer Lau Bik Soon said Teh Beng Hock and Tee Yew Yaw will each hold 32.5% in REDtone Mobile, its Mobile Virtual Network Operator (MVNO) arm. REDtone Mobile would benefit from the entry of Teh and Tee who also own Elepoint Sdn Bhd, the largest reseller for mobile operator Celcom Axiata Bhd within the corporate segment in Malaysia.
“Teh and Tee have more than 15 years of experience and a deep understanding of the mobile business in the country. Together with REDtone’s expertise in the SMB/SME (small and medium-sized business/small and medium-sized enterprise) segment, we believe it’s a strong partnership that will be able to take the company to a new level of growth,” Lau said in the emailed statement.
In its statement to Bursa Malaysia, REDtone said Teh and Tee would be injecting RM350,000 into REDtone Mobile, which had RM2.63 million net liabilities and RM3.16 million net loss for FY ended May 31, 2011. REDtone Mobile will pay REDtone Technology Sdn Bhd RM10,000 a month for support services, research & development as well as customer billing services.
“The ‘new’ REDtone Mobile will be more vibrant with better distribution channels to extend the reach of its services, and with more appealing offerings,” Lau said. Following the share sale, REDtone International will still own 35% of REDtone Mobile, which does not own its own network but offers mobile phone services by leasing network capacity from mobile operators like Celcom.
REDtone, whose clientele is mainly from the SME segment, launched its MVNO services in 2009 and had invested some RM3 million into the business, the company said.
Lau said the new shareholders will help loss-making REDtone International improve the prospects of its data and broadband operations which is seen as a major contributor to the company’s financials in the year ending May 31, 2012.
In financial year ended May 31, 2011, REDtone International’s net loss widened to RM11.72 million compared with a net loss of RM5.41 million a year ago.
Besides divesting its stake in the mobile business, Lau said REDtone International has also put in place other initiatives to reverse its fortunes.
This article appeared in The Edge Financial Daily, January 4, 2012.
