KUALA LUMPUR (Dec 23): Industronics Bhd via a consortium has been shortlisted for the Kedah Aerotropolis development project (Kedah Airport project) worth €3.3 billion (RM15.48 billion).
The consortium comprises Industronics, Hong Kong-based stockbroking firm Bluemount Financial Group Ltd and China-based sovereign wealth fund China Investment Corp (CIC).
In a statement on Friday (Dec 23), Industronics executive director Datuk Chu Boon Tiong said this shortlisting recognises the group's track record and established partners with strong financial backing, putting it in a good position to secure the planned Kedah Airport project.
The partnership between Industronics and its Chinese partners will gain further momentum with the reopening of China, opening up more business opportunities for the group, he said.
To expand credit leasing business
In addition to collaborating on the Kedah Airport project, CIC has also agreed to support the expansion plans of Industronics' credit leasing arm, TTE Electronics Sdn Bhd, by investing in its microfinance business.
TTE Electronics owns a leasing licence and is also involved in the microfinance and credit leasing business.
Industronics plans to expand its presence in the credit leasing business via TTE Electronics and will seek approval from the Securities Commission Malaysia to raise RM1 billion funds for its expansion in Southeast Asia.
The expansion will also see a strategic collaboration with TTE Electronics with Bikesome, a second-hand motorbike platform in Asia, for the credit leasing of motorbikes.
"With CIC coming in to support our credit leasing business, this would enhance our brand and market position in the region as these investments could accelerate the advancement of our credit," said Chu.
"There are a lot of challenges in the credit leasing industry as well as the global economy in the near term. Southeast Asia is in a better position to grow following the lacklustre performance in the last two years due to Covid-19. With the reopening of the economy and the support and backing from our strategic partner, we are confident that the expansion of our credit leasing arm business and microfinance in Southeast Asia will be a success," he added.
Industronics' share price was unchanged at 8.5 sen as of Friday (Dec 23) noon break, valuing it RM46.49 million.