Malaysian pawnbroker MoneyMax Financial Services – an offshoot of the Singapore group that specialises in pawnbroking, retail and trading in pre-owned jewellery, watches and branded goods – is buying into 13 pawnbrokers in Malaysia.

It is acquiring interests in the traders from CMS Top Holdings for a consideration of RM56.6 million  (US$13.5 million) through its wholly owned subsidiary Cash Online. The transaction is being funded through internal resources and will underwrite expansion of its pawnbroking network in Malaysia.

The target firms last year posted an aggregate net loss of about RM1.02 million, and have net tangible assets of about RM50.1 million.

Separately, Chong Mei Sang, which established a JV with MoneyMax in 2014, will acquire about 1.96 million shares in the capital of each target company, including Pajak Gadai Bukit Gambir and Pajak Gadai Senai.