GHL eyes opportunities in Thailand, RP, I'nesia
Following the acquisition of Australian-listed e-pay Asia (EPY), GHL Systems is exploring other merger-and-acquisition opportunities in the region while rolling out its internet merchant-acquiring business.
The company’s focus would be on integrating EPY into the group and ensuring it was not over-stretched, GHL group chief executive officer Raj Lorenz said.
“We may be looking at one M&A [merger and acquisition] in the region this year if the deal is right,” he told The Star's StarBiz, adding that the company was exploring opportunities with other parties that run similar businesses in Indonesia.
Lorenz said the GHL would consider different options for the M&A, including buying a substantial stake in an established entity that would allow it to leapfrog its market share in the archipelago.
Besides Indonesia, he said the company would continue to grow its presence in Thailand and the Philippines, as well as penetrating Indochina eventually.
“Our business in the Philippines is growing well although in Thailand things are moving at a slower pace due to the political situation there,” he said.
For the 2013 fourth quarter GHL’s Thai unit reported a loss of 572,000 ringgit (Bt5.6 million).
Stripping off the financial costs arising from the acquisition of EPY, the company’s normalised net profit for the three-month period stood at 2 million ringgit, as opposed to a loss of 400,000 ringgit.
Its full-year earnings improved 20 per cent to 5.26 million ringgit on revenue of 64 million ringgit.
Meanwhile, it plans to introduce an online payment segment in the second quarter and hopes to grow it into a big player in Asean.
“We already have the software for an internet payment gateway but we are building the risk components,” he said.
Lorenz said the Malaysian market for online payment was underserved and the expansion would allow it to diversify into more payment channels, in addition to the physical transaction businesses.
He anticipates a meaningful earnings contribution from the new business one year after the launch and notes that internet business growth is exponential. “Ultimately, you might be able to see the internet payment contributing 15 per cent to 20 per cent to the group’s revenue in three years’ time,” he said.
