27 minutes
PETALING JAYA: Industronics Bhd has entered into a memorandum of understanding (MoU) with China’s state-owned investment holding company State Development & Investment Corp Ltd (SDIC) for collaboration on asset management and capital market services.
The MoU is in line with the group’s proposed acquisition of a 10% stake in Hong Kong-based renowned stockbroking, asset management and credit firm Bluemount Financial Group Ltd.
Industronics executive director Datuk Chu Boon Tiong said the MoU will put the company on a fast track to expanding into the capital market services given SIDC’s strong track record in investment, restructuring and capital operation.
“Our role is to deal with the local authorities and regulatory bodies for the setup of the investment bank while SDIC will help on the funding for us to tap on the booming market in the asset management and capital market services,” he said.
Under the MoU, Industronics will set up a local investment bank in Labuan and work with the regulators on the necessary compliance-related issues and other required approvals. On the other hand, SDIC will provide access to an estimated US$1 billion (RM4.5 billion) in funding for the setup and expansion of asset management and capital market services.
Chu also stated that the future collaboration plans involved an acquisition or collaboration with a local stockbroking firm in Malaysia.
SDIC is one of China’s largest state-owned investment holding company. By the end of 2020, SDIC has 682 billion yuan (RM449 billion) in total assets and about 50,000 employees. Its gross revenue and total profit in 2020 were 153.7 billion yuan and 22.1 billion yuan, respectively.
