KUALA LUMPUR (Dec 22): Tan Chong Motor Holdings Bhd has teamed up with China’s GAC Motor International Ltd to look into selling and assembling the latter’s vehicles in Malaysia and Vietnam.

Tan Chong said its wholly-owned subsidiary TC Overseas Assets Holdings Labuan Pte Ltd signed a memorandum of understanding (MoU) with GAC today “to study on the potential and feasibility of the business opportunity”.

It added that GAC is devoted to producing world-class vehicles, engines, auto parts and accessories, as well as research and development of auto engineering technology.

The MoU is valid until July 1, 2021 unless revised by mutual agreement in writing, said Tan Chong in a filing with Bursa Malaysia.

“The proposed project, if materialised, would provide (the group) with the opportunity to further expand its foothold in the automotive industry in the region,” said Tan Chong.

It said the MoU will not have any effect on its earnings, net assets per share and gearing for the financial year ending Dec 31, 2020.

Tan Chong’s share price was unchanged at RM1.13 with 68,700 shares traded, giving a market capitalisation of RM759.36 million.