KUALA LUMPUR: Minetech Resources Bhd is diversifying into financial technology sector with the proposed acquisition of a payment solutions specialist.
Minetech said the acquisition would be carried out through its wholly-owned Techmile Resources Sdn Bhd.
Executive chairman Datuk Awang Daud Awang Putera said the discussions on the acquisition had begun in the last quarter of 2020 and talks were in its final stages.
"My team of financial advisors and consultants are in the midst of finalising the due diligence exercise and we hope to sign a memorandum of understanding (MoU) prior to the merger and acquisition (M&A) within the next fortnight", said Awang.
Awang said the exercise was aimed at transforming Techmile into a full stack fintech solutions provider in Malaysia where consumers can compare and identify a variety of financial products that best suit their needs, in addition to simplifying product purchasing process digitally.
"The pandemic has pushed us to accept a new reality, a future where businesses operate online as a necessity rather than a meagre second thought.
"With social distancing measures in place, over the counter transactions and sending cheques for instance have basically become almost impossible during the movement control order (MCO), therefore a solution like ours will help to overcome this," he said.
Awang said the partnership would provide Minetech with opportunities as the potential partner had already established a long-term relationship with two local banks since 2015.
He did not name the local financial technology solutions house and share further details.
"There is a huge market waiting to be tapped here. We hope that the new merger into fintech as well as our series of new ventures this year will increase Minetech's revenue in folds and boost our share prices," he added.