Business
Acquisition of the remaining 49% stake in Payme
Acquisition of the remaining 49% stake in Payme.
About this update from Tbc Bank Group Plc
[{"type":"text","content":"\n\nAcquisition of the remaining 49% stake in Payme\n\nTBC Bank Group PLC (\"TBC PLC\" or the \"Group\") announces that it has signed a Sales and Purchase Agreement (\"SPA\") to acquire the remaining minority share of 49% from the founding shareholders in LLC Inspired, the Group's payments subsidiary operating under the Payme brand (\"Payme\") in Uzbekistan. Following the acquisition of the minority share of Payme, TBC PLC has become the 100% shareholder of Payme.\nPayme is a leading digital payments provider in Uzbekistan for individuals and small businesses. It offers high-quality payment solutions via its multi-vertical app including P2P transfers, bill payments, QR payments, e-commerce, cross-border money remittances, loan repayments, personal financial manager (PFM) services and government services.\nThe transaction was conducted within the scope of the shareholder agreement entered by both parties during the Group's initial acquisition of 51% in Payme in April 2019. The exercise price of the option was based on a set of pre-determined parameters defined at the time of the original agreement, including Payme's revenue, EBIT and the number of active customers.\nSince then, Payme has grown significantly. The total revenue and profit before tax for the year to December 2022 amounted to USD 17.5 million and USD 11.4 million, respectively, compared to USD 1.6 million and USD 0.8 million, respectively, in 2018. The number of monthly active customers was 3.1 million at the end of March 2023, compared to 1.3 million users in April 2019.\nThe consideration to be paid for the 49% stake is USD 55.7 million and will be satisfied in cash within 10 banking days from the date of the completion, implying a total valuation of USD 113.6 million for Payme. Based on the first quarter 2023 annualized net profit, this valuation implies a 2023 P/E multiple of 6.5x.\nVakhtang Butskhrikidze, Chief Executive Officer, commented: \n\"We are delighted to be completing the minority buyout of Payme, giving us 100% ownership of this dynamic payments platform. This acquisition is in line with our previously outlined expansion strategy in Uzbekistan to create a leading fintech ecosystem. It will allow us to capture the strong synergy potential between the payments business and our digital bank, TBC UZ, by leveraging a large user base and a divers...