Malaysia’s state-owned private equity firm Ekuinas has sold its entire 60 per cent stake in Tranglo, a cross-border mobile transaction company, to Hong Kong-based TNG FinTech Group for RM114.9 million (US$27.5 million).

This is Ekuinas’s ninth divestment, which brings its total realisation proceeds to more than RM2 billion (US$482 million).

The decision to divest is in line with Ekuinas’s strategy to continue crystallising its assets when the time and economic climate are right, and identify a strategic partner that would be able to push the business into its next phase of growth.

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“The selection of TNG was made after a rigorous sale process that attracted global interest from several parties. It was done on a merit-based process, where capability, resource and alignment with management’s vision were equally as important as price. We want to ensure that the next partner would further catalyse the business. As such, it is important that the buyer has the necessary expertise, experience and capabilities to not only continue operating the business but more importantly, is equipped with the resources to develop and push the business further,” said Syed Yasir Arafat Syed Abd Kadir, CEO of Ekuinas.

Tranglo is a cross-border mobile transaction gateway company that facilitates airtime transfer and money remittance transactions in Southeast Asian countries, Hong Kong and China.

“Throughout the investment period, Ekuinas worked closely with Tranglo’s management team to expand its airtime transfer and money remittance network. In terms of performance, Tranglo successfully grew its money remittance volume by 15-fold since acquisition. We are confident that Tranglo will continue its strong performance over the mid-term,” said Arafat added.

Established in September 2009 with the government endowment of RM5 billion, Ekuinas aims to create Malaysia’s next generation of leading companies whilst promoting equitable, effective and sustainable Bumiputera economic participation. To date, Ekuinas has undertaken investments in high potential Malaysian companies involved in its core target sectors — namely FMCG, oil & gas, logistics, education, retail and healthcare.

Headquartered in Hong Kong, TNG provides financial services to the 1.2 billion unbanked population in Asia. Its flagship e-wallet application, TNG Wallet, provides 24×7 cash-in, cash-out and remittance services to its users through a network of 900-plus banks and over 200,000 cash pick-up points globally.