JSE-listed Prism Holdings has acquired 30% of Telekom Applied Business (TAB), the Information Communication Technology (ICT) software development subsidiary of Malaysia`s telecommunications corporation, Telekom Malaysia (TM) for R30-million.
In addition, Prism and TM are to establish a new company, Telekom Technologies SDN Berhad, which will set up and operate a secure national electronic payment switch for Malaysia.
Prism marketing director Duncan Todd says the acquisition is significant and will assuredly make national news in Malaysia, especially following just days after Prism`s Linkdata Malaysia acquisition.
"We are thrilled to be involved with TM. It has a presence in 14 telecos worldwide as well as a 20% stake in Telkom, which we will obviously be looking to leverage off in future," says Todd.
He adds that TM will be exclusively using Prism`s switching infrastructure."
The technology for Telekom Technologies, to be supplied via TAB, will be based on the EasyPay technology developed by Prism`s transaction processing subsidiary TranSwitch Services (TSS).
Telekom Technologies will also be equipped to handle cellphone-based m-commerce transactions in its second phase of development, using Prism technology.
Prism will hold 30% equity in Telekom Technologies, which is scheduled to begin operations later this year.
Todd says the deal is also significant for shareholders as it means there will be no drain on either local Prism staff, or cash. The new company is also strategically situated in the Multimedia Super Corridor, giving Prism an upwards of 5-year tax break.
Todd says Prism will be looking to both the local and international markets to raise further capital in the medium term for further expansion.
He says Prism, together with JP Morgan is also studying fast- and slow-track options to achieve the London listing the company announced last year.
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