Razer, lifestyle brand for gamers, has revealed its intention to fully acquire e-payment enabler for online goods and services, MOL Global. This will be done through the acquisition of approximately 65.1% of MOL Global's issued share capital for a cash consideration of approximately US$62million. This represents the remaining shares in MOL Global that is not already owned by Razer, which is also proposed as a statutory merger. Upon the completion of the merger, MOL Global will thus become a wholly-owned subsidiary of Razer.
While the proposed merger is still subjected to the approval of MOL Global’s shareholders, Razer has already obtained irrevocable undertakings from other major shareholders to vote in favour of the merger. This, in combination with Razer’s current stake of 34.9%, be sufficient to approve the merger.
According to Min-Liang Tan, co-founder and CEO of Razer, the acquisition will combine Razer's zGold and MOL Global's MOLPoints virtual credits, thus creating one of the largest virtual credits platforms for gamers in the world.
"Given that MOL Global already runs one of the largest e-payments networks in Southeast Asia, the integration of MOL Global’s businesses represents an exciting new business segment with boundless potential that Razer can extend into," Tan said.
In addition, the proposed acquisition also provides a springboard for Razer's entry and growth in new business categories such as e-payments. The company will also be able to leverage on MOL Global’s technologies, and build on MOL Global’s extensive Southeast Asia presence and network, to extend and accelerate the growth of its existing ecosystem of hardware, software and services rapidly in the region, and capitalize on the robust growth of Southeast Asia.