Purchase of remaining stake in its subsidiary

RNS Number : 8490D

Mode Global Holdings PLC

02 November 2020

 

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02 November 2020

MODE GLOBAL HOLDINGS PLC

Mode purchases remaining stake in its payments subsidiary

Highlights

· Mode has bought out the minority interest in operating subsidiary JGOO Limited (part of "Mode for Business") and its associated technology.

· This consolidates Mode's business proposition and gives it full control of its associated partnerships with Tencent and Alipay.

· The technology acquired will accelerate the group's strategic goal to build a modern financial services business that combines next-generation banking, payments, investment, loyalty and digital assets.

Mode Global Holdings PLC (LSE:MODE), the LSE-listed Fintech Group, announced today that it has consolidated its position by completing the buy-out of the 45% minority interest in one of its operating subsidiaries - JGOO Limited (operating as part of Mode for Business) - from Pure NZ Gateway Ltd. The transaction includes the purchase of JGOO's technology and the rights associated to it. 

As part of its Mode for Business offering, Mode operates a payment processing, marketing and advertising business, for UK merchants aiming to access overseas markets such as China. The technology provides a payment gateway solution for UK merchants allowing them to accept payments from WeChat Pay and Alipay - the two largest payment platforms in the world. This supports Mode's vision of removing friction in the global payments market and enables UK merchants to engage with Chinese shoppers. 

Buying out Pure NZ Gateway consolidates Mode's business and value proposition. The purchase provides complete ownership of JGOO Limited and means the Mode Group will have full control of all of its operating subsidiaries as well as a direct relationship with its preferred partners, technology giants Tencent and Alipay. As part of the transaction, Mode has also acquired the payment-system technology by way of an irrevocable, perpetual royalty free licence for the use of the technology and associated rights, including the ability to sub-licence the technology.

Mode for Business aims to bring a multitude of novel payment solutions to the UK payments landscape, including an open banking-powered payments and loyalty platform that allows businesses to accept payments from Mode users, and engage with them through a unique and personalised shopping experience.

Jonathan Rowland, Executive Chairman at Mode, commented: " This development is an important milestone towards building a modern financial services business to support an increasingly digitised economy and financial system, that combines the best of banking, payments, investment, loyalty and digital assets. By securing our technology and taking back full control of the business, we are underpinning our future strategy and supporting our long-term vision."

Enquiries For further information please visit www.modebanking.com or contact:
(IR/PR Contact) Maitland/AMO Neil Bennett/James Isola [e-mail]	Tel: [phone]
Alfred Henry Corporate Finance Limited (Financial Adviser) Nick Michaels/Jon Isaacs	Tel: [phone]
Peterhouse Capital Limited Lucy Williams/Charles Goodfellow / Duncan Vasey	Tel: [phone]

 

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