Main Market-listed technology company, Industronics Bhd expects its strategic partnership with Securities and Futures Commission of Hong Kong (SFC)-licensed Bluemount Financial Group Ltd to be a gateway to the lucrative financial technology (fintech) space.
Industronics general manager Lee Chee Cheng sees the assimilation of Bluemount’s expertise in financial services and market access with Industronics’ competency and capability in technology services as opening up many new exciting opportunities, including pivoting the enlarged group towards the fintech segment.
“We have strong conviction that the future of finance is technology-driven and as such, fintech is definitely the direction that we are pursuing moving forward and we see ourselves playing a key role in the revolution of financial services industry,” opined Lee.
Industronics today inked a memorandum of understanding (MOU) with Bluemount as well as its shareholder Li Hok Yin on the acquisition of a stake in Bluemount.
The MOU sets the framework for all parties involved to discuss and negotiate on the details as well as terms and conditions with regard to the proposed acquisition, with the intention of entering into a definitive agreement in due course.
Bluemount was founded in 2016 with current issued share capital of HK$23 mil. Its shareholders include Hong Kong-listed Echo International Holdings Group Ltd with a 30% stake while the balance 70% is held by four individuals including Li.
Through its subsidiaries, Bluemount offers comprehensive financial services with five main divisions – securities brokerage, asset management, credit services, capital financing and commodities.
Bluemount recorded a profit of HK$3.3 mil on the back of HK$15.8 mil revenue in its latest audited financial statements ended March 31, 2020.
Bluemount’s wholly-owned securities brokerage arm, Bluemount Securities Ltd (BSL) is an exchange participant of the Stock Exchange of Hong Kong Ltd and licensed by the SFC to carry out Type 1 (Dealing in Securities) and Type 4 (Advising on Securities) regulated activities.
BSL offers brokerage services that include securities dealing, margin financing, initial public offering underwriting, and secondary market placement.
Meanwhile, the group’s wholly-owned asset management subsidiary, Bluemount Asset Management Ltd (BAML) is licensed by the SFC to carry out Type 9 (Asset Management) regulated activity.
BAML provides portfolio and investment management services to professional investors. Bluemount’s wholly-owned credit services arm, Bluemount Credit Ltd (BCL) is involved in money lending business, having been granted the money lender’s license in late 2017.
“Furthermore, we see synergies as well with Bluemount e-commerce platform ECHK Mall as we, too, are involved in the e-commerce space through our subsidiary, All Best Group Ltd,” Lee pointed out.
“Combining both forces would yield greater impact, economies of scale and much larger customer base.”
Moreover, Bluemount may also be considering options to go public by listing its shares on one of the stock exchanges in Southeast Asia in the near- to mid-term time horizon.
“The listing exercise, if materialises, would further elevate the company’s market presence and raise more capital to drive growth. This would certainly benefit Industronics too, should our proposed acquisition come to fruition,” added Lee.
At 3.35pm, Industronics was up 3 sen or 7.89% to 41 sen with 19.72 million shares traded, thus valuing the company at RM68 mil. – March 23, 2021
