Digistar to diversify into money lending business

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KUALA LUMPUR (Sept 9): Digistar Corp Bhd, which manufactures broadcasting equipment services, is diversifying into money lending after getting the licence for it from the government and expects the segment to bring a positive contribution to its financial year ending Sept 30, 2015 (FY15).

In a filing with Bursa Malaysia today, Digistar said its wholly-owned subsidiary Nielsen Ward Sdn Bhd (NWSB) had received a money-lending licence from the Urban Wellbeing, Housing and Local Government Ministry under Akta Pemberi Pinjam Wang 1951 (Akta 400) via the ministry’s letter dated Aug 20.

It said the approval is subject to the fulfillment of all the conditions imposed, as stated in the ministry’s letter, “within three months from the date of approval,” which is by Nov 20, 2014.

“The business licence will diversify Digistar’s earnings base and is expected to contribute positively to the group’s earnings for FY15 when NWSB commences its money lending business.”

Digistar’s counter shed half a sen to close at 31.5 sen today, after 2.404 million shares were traded.