DBS Bank, a multinational banking and financial services corporation based in Singapore, has announced its plan to sell a majority stake of 77.8% in AXS Pte Ltd to private equity firm Tower Capital Asia. The deal, set to finalize by August this year, signals a strategic shift as Tower Capital Asia seeks to broaden AXS’s footprint in the Southeast Asian region.
Despite the major stake sale, DBS will retain a 9.9% minority stake in AXS, underscoring its continued interest and partnership with the firm. Importantly, Tower Capital Asia has clarified that they do not plan to make any immediate substantial changes to AXS’s operations. As such, customers can expect to utilize AXS’s services seamlessly as before. Furthermore, DBS anticipates the transaction to have minimal impact on its earnings or net tangible assets for the financial year ending December 2023.
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Danny Koh, the Founder and CEO of Tower Capital Asia, expressed his excitement about the addition of AXS to their portfolio, highlighting the robust growth potential in the backdrop of a digital payments boom worldwide. Likewise, Joey Chang, Founder and CEO of AXS, acknowledged the investment as a strong endorsement of their achievements and future prospects.
Looking forward, Tower Capital Asia intends to transform AXS into a leading regional provider of cloud-based payment solutions. Their strategy includes significant investment in technological innovation and service extension to ensure a frictionless payment experience for both merchants and consumers.
Adding to the excitement, AXS co-founder Jeffrey Goh, who formerly served as the CEO of NETS Group, will make a return to AXS. Goh expressed his enthusiasm about rejoining the company he helped found and remains deeply passionate about, particularly in the rapidly evolving landscape of digital payments.
Founded over 13 years ago, AXS pioneered electronic delivery services in Singapore. It became a DBS subsidiary in 2006 and has since expanded its digital payments and collections network significantly, with over 660 operations and a range of online and mobile services.
News Source: This article is based on a report by Marketing Interactive.
