Malaysia-listed electronics firm Industronics Berhard will receive access to an estimated $1 billion in funding from China’s State Development & Investment Corporation (SDIC) as part of their collaboration on asset management and capital market services.
Industronics said its agreement with SDIC, one of China’s largest state-owned investment holding company, is in line with its plans to acquire 10% of Hong Kong-based stockbroking, asset management and credit firm Bluemount Financial Group Limited.
The deal is part of Industronics’s future plans to include the acquisition or collaboration with a local stockbroking firm in Malaysia to expand its offerings in the capital market services, according to the memorandum of understanding signed by the two parties.
“The acquisition of 10% in Bluemount offers the perfect synergy to the collaboration as Bluemount has a team of professionals who have vast experience in the financial services segment,” the document reads.
Under the terms of the agreement, Industronics will set up a local investment bank in Labuan, Malaysia, while SDIC will provide access to funding worth an estimated $1 billion for the setup and expansion of asset management and capital market services.
“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,” said Industronics Executive Director Chu Boon Tiong.
However, the board of directors of Industronics said there is no certainty that the MoU will result in the signing of a definitive collaboration agreement, although it said the MoU is in the best interest of the company and its shareholders.
Industronics is an established electronics company engaged in the design, manufacturing and installation of electronics and microprocessor-controlled products, telecommunication systems, audio video multimedia systems, intelligent transportation systems and information communication technology-related systems.