- Company plans to bring in new investor for unit called SEQR
- Shares add to Monday's 12% gain in Stockholm trading
Seamless Distribution AB shares advanced after the Swedish payment-technology provider announced a plan split off its secure mobile-transactions business.
Seamless said Tuesday it is bringing in a new investor to support the unit’s growth, letting the company focus on its two larger and profitable divisions. The company has mandated an adviser to find a partner for the mobile-payments unit, called SEQR. Seamless will remain a shareholder in SEQR, which won’t be consolidated into its earnings.
The shares added 1.8 percent to 11.15 kronor at 9:42 a.m. in Stockholm, after rising as much as 13 percent. The stock added 12 percent Monday after Bloomberg News reported the split-off plan. The shares are trading near a three-month high, valuing the company at about 460 million kronor ($54 million).
"We want Seamless’ shareholders to benefit from continuing ownership of a profitable company, as well as a continued equity participation in SEQR,” Chief Executive Officer Peter Fredell said in a statement.
The split leaves shareholders more exposed to two Seamless units that are both profitable and growing faster than SEQR. The division had an operating loss of 35.5 million kronor in the second quarter on sales of 1.8 million kronor, as it invested in expansion, according to the Stockholm-based company’s website.
The SEQR app routes payments from smartphones and bank accounts, dodging traditional card-handling fees, with customers including McDonald’s Corp. restaurants in Sweden and grocer Axfood AB. SEQR introduced its service in the U.S. in June. Seamless’s other units provide technology for submitting remittance payments and handling top-ups for prepaid mobile-phone accounts.