KUALA LUMPUR: Industronics Bhd has signed a non-binding letter of intent (LoI) with Hong Kong-based Bluemount Financial Group Ltd (BFG) to purchase a 10 per cent stake in the company for RM12.5 million.
Industronics executive director Datuk Chu Boon Tiong said BFG has a proven track record in Hong Kong in the financial services business.
"It is an exciting journey ahead for us as this acquisition would help us tap on the lucrative financial services business in Hong Kong," he said in a statement today.
BFG is a renowned stockbroking, asset management and credit firm based in Hong Kong that is valued at HK$250 million.
BFG is well funded with abundant capital, familiar with the operation of markets and has rigorous internal control systems, which have led to a profit of HK$10 million and HK$20 million in 2020 and 2021, respectively, despite the Covid-19 pandemic disruption.
Further, BFG's wholly-owned securities brokerage arm, Bluemount Securities Ltd (BSL) is an exchange participant of the Stock Exchange of Hong Kong Ltd and licensed by the Securities and Futures Commission of Hong Kong (SFC) to carry out Type 1 (Dealing in Securities) and Type 4 (Advising on Securities) regulated activities.
BFG's wholly-owned asset management subsidiary, Bluemount Asset Management Ltd (BAML) is licensed by SFC to carry out Type 9 (Asset Management) regulated activity.
BAML provides portfolio and investment management services to professional investors.
As for the credit services, it was undertaken by Bluemount Credit Ltd (BCL), a wholly-owned services arm of BFG.
"BFG has a team of professionals and experts who have vast experience in the financial services segment.
"Whether a business is looking for a listing on the Hong Kong Stock Exchange or if there is a need for credit services, BFG has a viable solution to offer.
"On top of that, there is a strong team that can help with the management of funds in Hong Kong.
"You can see from the impressive 1,900 per cent growth in one of the funds under its management (Cyber Investment Fund Sp) in Hong Kong," Chu said.
"With the acquisition of BFG, this put us in a good position to tap on the Hong Kong market, which is poised to benefit from the potential delisting action of China stocks in US Stock Exchange for failure to meet audit requirements," he said.