Cardtrend buys Malaysian pre-paid outfit SMSBiz
28 January 2008 | 2354 views | 0
Cardtrend International (Other OTC:CDTR.PK) ("Cardtrend") today announced that it has signed a share exchange agreement to acquire 100% of SMS Biz Sdn. Bhd. ("SMSBiz"), an established provider of prepaid telecommunications services and products in Malaysia with alliances with other prepaid vendors throughout Southeast Asia.
The share exchange agreement replaces an existing business alliance agreement signed with SMSBiz in November 2007 which included an option to acquire SMSBiz. This acquisition solidifies Cardtrend's position in the Malaysian prepaid market while also facilitating the development of other national markets.
Based in Kuala Lumpur, Malaysia, SMSBiz issues prepaid long distance calling cards under various brands, namely, SuperWorld, Camaron and Bangladesh Special for individual users, and SuperTalk for home and corporate users. Current sales volume is over US$300,000 per month and growing.
KK Ng, CEO of Cardtrend, said, "Consummation of this acquisition not only will improve our revenue and profit margins in the current Prepaid Business unit, it will enable Cardtrend to more rapidly introduce our prepaid products throughout the region, especially China, where we see significant opportunities for the SMSBiz product line."
Mr. Anthony Yap, Founder and Managing Director of SMSBiz, added, "We are pleased to join the Cardtrend family and we see significant synergies which will provide additional channels to sell our products in Malaysia and elsewhere in Asia. In addition we will now have access to Cardtrend's systems capabilities to improve our profit margins."
The SMSBiz acquisition underpins Cardtrend's commitment to expanding the sale of its prepaid products and services throughout Asia, focusing especially on China.