KUALA LUMPUR (May 6): Gunung Capital Bhd said today it has been invited by promoters of a yet-to-be-issued, fully fledged commercial banking licence in Cambodia to evaluate a proposal to participate.

"At this stage of evaluation and discussions, the company cannot confirm the quantum of the investment value involved," it said in a filing with Bursa Malaysia today.

Gunung Capital was commenting on a May 4 report by The Edge Malaysia that stated the company was planning to acquire a more than 20% equity stake in a financial institution in Cambodia, with total investment value estimated at over US$25 million.

The company confirmed that it is currently in advanced discussions regarding the allowable equity participation in financial institutions and other qualitative and quantitative requirements such as governance issues imposed by the relevant authorities in Cambodia on foreign equity participation.

"Upon completion of the evaluation of the proposal, and [if] the prospective yield of such an equity investment is strongly beneficial to the company, then the management of the company will seek a meaningful equity participation of at least a 20% equity stake to maximise on this investment opportunity," it added.

Gunung Capital also touched on the report that quoted its executive director Datuk Yap Yee Ping as saying that the company also plans to unlock the bank’s value through a listing in Cambodia.

It said it is premature to conclude that a listing exercise in Cambodia is the company’s only option to unlock the value of such an equity investment.

"This option is obviously a long-term strategy given the current infancy stage of the commercial bank proposal, the unconcluded evaluation of the proposal, and would require the necessary approvals from relevant authorities in Cambodia to list on the stock exchange. The management of the company will look into all options to maximise the financial returns of the company, when and if the time comes."

Shares in Gunung Capital fell 3 sen or 5.22% to close at 54.5 sen today, valuing the stock at RM131.25 million.