SINGAPORE (June 25): Great Eastern Holdings announced that it has entered into a share subscription agreement with Boost Holdings, a fintech company incorporated in Malaysia.

Boost is Malaysia’s largest e-wallet and lifestyle app with over 7.5 million users and 170,000 merchants.

The company is currently wholly-owned by Axiata Digital Services, the digital services arm of Axiata Group.

The agreement was signed by Great Eastern’s wholly-owned subsidiary Great Eastern Digital on Thursday.

Under the agreement, Great Eastern Digital will subscribe for a 21.875% stake in Boost for a cash consideration of US$70 million (S$97 million).

Upon completion of the transaction, Axiata Digital’s stake in Boost will be reduced to 78.125%.

The price was arrived on a willing-buyer, willing-seller basis, and took into account factors such as existing customer base, digital capabilities, business potential, and market outlook.

Funds from the investment will go towards expansion plans for Axiata Digital’s digital financial services (DFS) business in Malaysia and the region.

The completion of the subscription is expected to occur within the next few months, following the approval by the Monetary Authority of Singapore (MAS).

Completion of the Subscription is subject to, among other things, approval by the Monetary Authority of Singapore and is expected to occur in the next few months.

“This strategic investment will enable Great Eastern to participate in Axiata’s growing fintech expansion plans in the region. Axiata’s focus on providing financial services for the underserved, unbanked and under insured customer segment also resonates well with our business strategy,” says Khor Hock Seng, group CEO at Great Eastern.

“By leveraging on Axiata’s network and digital capabilities, and partnering with them, we want to grow our reach into new customer segments to provide for their financial needs and ultimately improve their lives,” he adds.

Shares in Great Eastern Holdings closed 10 cents lower, or 0.5% down, at $19.71.