MoneyMax obtains options to purchase two Lucky Plaza properties

MoneyMax outlet in Singapore’s Little India neighborhood; taken October 2018.MoneyMax outlet in Singapore’s Little India neighborhood; taken October 2018.

MoneyMax Financial Services’ wholly owned subsidiary MoneyMax Credit has obtained two options to purchase two properties at Lucky Plaza from an unrelated party for a total S$18 million, the pawnshop operator said in a filing to SGX Wednesday.

“The proposed acquisition is part of the group’s strategy for business expansion. It is intended that the properties will be used for future outlets and other possible source of income,” the filing said.

Under the option, the unit at #01-65, with 47 square meters, would be acquired for S$8.5 million, and the unit at #02-77/78, with 74 square meters, would be acquired for S$905 million, MoneyMax said.

On a pro forma basis, if the acquisition had been completed on 1 January 2018, the company’s earnings per share would have been 1.39 Singapore cents for 2018, compared with 1.41 Singapore cents reported for the period, the filing said, adding that used estimated costs on a bank loan to finance the deal and other costs, such as depreciation and property tax.

The consideration will be paid in tranches of 1 percent on the option’s acceptance, 4 percent on the option’s exercise and the final 95 percent upon the deal’s completion, the filing said.

The deal is expected to be completed on 26 February, MoneyMax said.

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