KUALA LUMPUR (Oct 23): Country Heights Holdings Bhd announced today it is partnering with motor sport and lifestyle company Goldenport Motor Culture Development (Beijing) Co Ltd to set up an auto city and motor-sport track facilities for future automobile racing events in Malaysia.
Both companies have entered into a memorandum of understanding (MoU) today to set forth their mutual intentions regarding the possible transactions, which is in line with Country Heights' business expansion plan into the automotive industry, Country Heights said in an exchange filing today.
A self-described property conglomerate, Country Heights currently undertakes property development with a presence across the hospitality, tourism and education sectors.
The MoU comes on the heels of another auto-related partnership last week. On Oct 18, Country Heights said it had signed a one-year MoU with AsiaAuto Venture Sdn Bhd in a proposed joint venture to develop an auto-lifestyle centre. AsiaAuto Venture conducts auto-related programmes.
According to Country Heights, Goldenport has the knowledge of all track operational processes, technical expertise and data, procedures and methods relating to motor-sport track racing in China, as well as the relevant skill and expertise to perform such works.
"Following discussions between Goldenport and the company, the company is considering a possible business transaction with Goldenport with a view to furthering the parties' mutual objective of organising an automobile racing event in Malaysia, as well as to assist the company in the development of an automotive lifestyle centre and other automotive industry related businesses in Malaysia.
"The MoU sets out the general framework and intentions of the parties for collaboration for facilitation of further definitive agreement(s), including but not limited to the share sale agreement, shareholders agreement and such other documents that may be required to be executed by the parties," Country Heights added.
Under terms of the MoU, Goldenport will be advising and assisting with the master plan of the auto city and motor-sport track facilities, the allocation and leasing of any commercial space, and helping the company with the certifications needed for the facilities.
The execution of the MoU, which is valid for one year starting from the date of the agreement, is not subject to shareholders' approval.
Country Heights shares rose five sen or 3.85% to close at RM1.35 today, with a market capitalisation of RM369.3 million.