BEVERLY HILLS GROUP, INC. Enters Final Phase of Banking Services Company Acquisition.
April 27 2016 - 9:00AM
InvestorsHub NewsWire
BEVERLY HILLS GROUP, INC. Enters Final Phase of
Banking Services Company Acquisition.
BEVERLY HILLS, CA -- April
26, 2016 -- InvestorsHub NewsWire -- BEVERLY HILLS
GROUP, INC. (“The Company”) (OTC:PK
BHGI) is pleased to announce they are in the final stage of
their third acquisition, “ON Comercio”.
ON Comercio is a niche banking company that
installs Point of Sale (PoS) units in small convenience stores and
kiosks. This provides them with banking/credit card services,
domestic/international shipping services and inventory
management/ordering services. In addition, these PoS units
can be used to pay tax and utility bills. ON Comercio will
earn a percentage of each transaction.
One critical aspect of the ON Comercio service
is that it allows the stores to participate in a wide range of
services. Most small convenience stores and kiosks in Mexico
do not have bank accounts. By opening a bank account with ON
Comercio the shop becomes more official in the eyes of the
government, their service providers (i.e. utilities) and
their suppliers. The stores will also be able to accept
credit and debit cards, which are growing in popularity in
Mexico.
The company plans to rollout ON Comercio
services in three states initially: Baja California, Guanajuato and
San Luis Potosí.
Management estimates that the ON Comercio
business could reach $42M in revenue by Year 2 after funding.
Listed consumer finance operations in Mexico trade at an
average of 2.9 times Price to Sales. Applying this metric to
the estimates for Year 2 provides a valuation of $121M to the ON
Comercio business. Management estimates that approximately
$18M would have to be invested to achieve this level of sales,
providing a value of approximately $103M from this
business.
We believe that the longer-term valuation of ON
Comercio could be much higher. As the business grows and
becomes a more integral part of the Mexican convenience store
industry, the value of ON Comercio could rise towards
$1B.
This is a very exciting time for BHGI
shareholders as we enter the closing phase of this important
acquisition.
Jacob Thomas
Chairman of the Board
Beverly Hills Group Inc.
About
Beverly Hills Group Inc.
Beverly
Hills Group Inc. is a holding company which is focused on economic
growth in Mexico and will provide investors a unique exposure to
this growth. Mexico is a major beneficiary of unexpected economic
expansion in the U.S. and is benefiting from reforms made by the
government of President Enrique
Peña Nieto. Since his election in 2012, President Nieto’s
administration has concentrated on liberalization and reform.
The most dramatic reform was the opening of the energy sector
in Mexico to foreign investment. The sector had been closed
to foreign involvement since nationalization in 1938. The company’s
strategy is to grow using acquisitions in the United States, Mexico
and Latin-America.
FORWARD-LOOKING
STATEMENTS
This
shareholder update may contain a number of forward-looking
statements. Words and variations of words such as: "expect”,
"goals", “could”, "plans", "believe", “continue", "may", "will" and
similar expressions are intended to identify our forward-looking
statements, including but not limited to: our expectation for
growth, benefits from brand-building, cost savings and
margins.
These
forward-looking statements are subject to a number of risks and
uncertainties, many of which are beyond our control, which could
cause our actual results to differ materially from those indicated
in our forward-looking statements. Such factors include, but are
not limited to: continued volatility of, and sharp increase in:
costs/pricing actions, increased competition, risks from operating
internationally, consumer weakness, weakness in economic conditions
and tax law changes.
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