Morse to spin-off mobile banking unit Monitise

Morse to spin-off mobile banking unit Monitise

UK systems house Morse is to spin off its mobile banking arm Monitise and list the business on the AIM junior market.

Monitise, developed over the past four years in partnership with the Link ATM network, has signed agreements in the UK with First Direct, HSBC, Alliance & Leicester and The Royal Bank of Scotland Group as well as with each of the five major mobile networks. The unit has also struck up a US distribution pact with Metavante.

In seeking the demerger, Morse says; "Recent discussions with independent third party advisers have confirmed the Morse plc Board's confidence that the value of the Monitise business could be significantly in excess of the funds invested to date in building the business and that its further development would be best served by separating it from Morse plc."

It believes that the spin-off could crystallise "significant additional value" and give the Monitise business the freedom to pursue its own independent strategy.

The vendor says a circular including full details of the proposed demerger will be sent to shareholders in due course.

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