The main-market listed group today made the announcement that it had entered into a non-binding Memorandum of Understanding (MOU) with China’s SDIC for the purposes of setting up a collaboration on asset management and capital market services.
The move is in line with the group’s plans to acquire a 10% stake in Hong Kong-based stockbroking, asset management and credit firm, BFGL (Bluemount Financial Group Limited)
ITRONIC plans to set up an investment bank in Labuan and work with the regulators on compliance-related issues, while SDIC will provide access to funding of an estimated USD1 billion. It is part of ITRONIC Group’s future plans to include acquisition or collaboration with local stockbroking firm in Malaysia to expand its offerings in the capital market services. Hence, the acquisition of 10% in BFGL offers the perfect synergy to the collaboration as BFGL has a team of professionals who have vast experience in the financial services segment.
Despite the COVID-19 pandemic disruption, BFGL generated profits of HKD10 million and HKD20 million in 2020 and 2021. It is currently valued at HKD250 million.
To recap, ITRONIC is principally engaged in the design, manufacturing and installation of electronics and microprocessor-controlled products, telecommunication system, audio video multimedia systems, intelligent transportation systems and
information communication technology related system.
SDIC is one of China’s largest state-owned investment holding company. By the end of 2020, SDIC has RMB682 billion (around USD107 billion) in total assets and about 50,000 employees. Its gross revenue and total profit in 2020 were RMB153.7 billion (around USD24.1 billion) and RMB22.1 billion (around USD3.5 billion) respectively.
