e-Pay Asia accepts $8.5m buyout offer

e-Pay Asia (ASX:EPY) has approved an $8.5 million bid for the operating subsidiaries that hold its mobile credit top-up business, and will now take the offer to shareholders

Electronic payment company, e-Pay Asia (ASX:EPY), has agreed to sell its main operating assets for $8.5 million.

The company will, pending shareholder approval, sell the operating subsidiaries that hold its mobile credit recharge business to Tobikiri Capital.

The transaction will also involve a return of capital of 17 cents per share to shareholders.

Under the terms of the deal, e-Pay Asia will agree not to compete with the businesses up for sale in the markets of Malaysia, Thailand, Indonesia, Singapore, Myanmar, Vietnam, Laos, Brunei, Cambodia, the Philippines or Pakistan for at least three years after the deal closes.

e-Pay Asia said it had applied for ASIC approval to hold its annual general meeting, which will be used to seek shareholder approval on the sale, by no later than 31 July.

The company first announced the deal in mid-April, and at the time had been given weeks to decide whether to accept the offer.

But e-Pay Asia and Tobikiri had agreed to extend the non-binding period for another week to give independent directors more time to assess the offer.

In May last year, e-Pay Asia called off a deal to sell the same subsidiaries for $7 million and a return to shareholders of 17 cents per share.

EPY shares grew 2.86 per cent during Wednesday's trading to $0.175.

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