Asia Payment Systems, Inc. has signed a non-binding agreement to acquire all of the shares of its partner InterPay International Group Limited. The alliance formed between the two companies in December 2005 when they decided the two companies would work better as one organization.
“Completion of the InterPay purchase will create a new and far stronger Asia Pay,” said Robert Clarke, current CEO and Chairman of Asia Pay. “We expect to show revenue growth and cash generation in 2006 which will be significantly higher than if Asia Pay were to continue to operate on our current basis. The acquisition of InterPay is expected to transform Asia Pay into a major player in the payment and loyalty cards industry in the Asian region within the foreseeable future.”
The share purchase agreement calls for the issue to the shareholders of InterPay, by Asia Pay, of 3,500,000 convertible preferred shares which will convert into 17,500,000 restricted common shares of Asia Pay. InterPay can appoint two additional directors to the Asia Pay board, and the management team, information systems and operations will be integrated into one organization. KK Ng, the current president and CEO of InterPay, would become president and CEO of Asia Pay.
“We believe the combined strengths of InterPay and Asia Pay will lead to more rapid development of key markets which will enhance shareholder value,” Ng said. “I am excited to work with Asia Pay’s executive team as we build a stronger organization.”
The key executive roles in the new organization are projected to be Robert Clarke, chairman of the Board; KK Ng, president and CEO; and Benny Lee, executive vice-chairman, who will continue his emphasis on developing operations in China.