Tan Chong Motor Holdings Bhd intends to subscribe to 50% of the share capital of TC Capital (Thailand) Co Ltd (TCCT), a limited liability company to be established in Thailand, to undertake the automotive hire-purchase business.
Nissan Diesel (Thailand) Co Ltd (NDT), a wholly-owned subsidiary of Tan Chong International Ltd (TCIL), will subscribe to the remaining 50% of the new company.
This investment would allow the Tan Chong motor group to diversify its revenue base in the rapidly expanding Thai economy, Tan Chong Motor said in a statement.
TCIL is a public company whose shares are listed and quoted on the Hong Kong Stock Exchange.
TCIL and its group of companies (TCIL Group) are involved in activities that include the distribution of motor vehicles, heavy commercial vehicles, and hire-purchase financing.
Tan Chong Consolidated Sdn Bhd (TCC) is a direct major shareholder of Tan Chong Motor and TCIL.
Tan Chong Motor group had been involved in the automotive business as well as in automotive financing activities for over two decades, it said.
As at the end of 2002, Tan Chong Motor group had built up a sizeable hire-purchase loan portfolio of RM266mil, Tan Chong Motor said in explaining the rationale behind the investment.
The non-performing loans from the hire-purchase business had been consistently kept below 1%, it added.
As at the end of 2002, Tan Chong Motor group had a cash balance of RM120mil and investment in money market funds of RM49mil, which could be readily turned into cash, it said. – Bernama
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