KUALA LUMPUR (March 23): Electronics company Industronics Bhd has entered into a non-binding memorandum of understanding (MoU) with Hong Kong's Bluemount Financial Group Ltd and its shareholder and director Li Hok Yin today to further discuss and negotiate the terms and conditions with regard to the proposed acquisition of Bluemount shares for the purpose of venturing into the financial services industry, specifically exploring the fintech industry.

Industronics said in a bourse filing that the MoU shall be valid and remain in effect for a period of one year from the date of the MoU.

According to Industronics, Bluemount was incorporated in Hong Kong in 2016 and is principally engaged in the business of financial services. It recorded a profit of HK$3.29 million on the back of HK$15.84 million revenue in its latest audited financial statements for the year ended March 31, 2020.

“The effects of the collaboration will only be determined upon the finalisation of terms of any collaboration agreement(s). Should any collaboration agreement materialise, it is expected to contribute positively to the future earnings of the group,” it said.

It also said the board of directors of the company is of the opinion that the MoU is in the best interest of the company and its shareholders.

At noon break, Industronics shares were three sen or 7.89% higher at 41 sen, valuing the group at RM71.7 million.