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CATALIST-LISTED integrated professional services provider, Zico Holdings, on Tuesday announced plans to establish a joint-venture company (JVC) with Stamford Law Corporation, a Singapore-based corporate law firm, to provide corporate secretarial services.
The JVC, to be 51 per cent-owned by Zico and 49 per cent-owned by Stamford Law, will manage and hold the title, right and interest to the former's S$2.4 million proposed acquisition of the latter's corporate secretarial files.
The sale and transfer of the files took place on this New Year's day, and the proposed acquisition is expected to be completed on Mar 31 this year.
After taking into account the funding of the proposed acquisition, Zico has a remaining balance of S$8.74 million of its initial public offering (IPO) proceeds raised on the Catalist board of the Singapore Exchange in November last year.
Zico's managing director, Chew Seng Kok, said the JVC is closely in line with the company's expansion plans.
"As part of the strategy to enhance Zico's services, the partnership with Stamford Law, one of Singapore's leading corporate law firms, is a clear testament of Zico's direction and commitment to expand the provision of professional services and attract a fuller spectrum of clients."
Mr Chew believes that the acquisition will also build Zico's portfolio of stable and recurring revenue streams while the synergies will lead to potential lower overall operational expenses and streamlined work processes.
Senior director of Stamford Law, Lee Suet Fern, said the JVC allows Stamford Law to deliver corporate secretarial and support services to its clients in an efficient, professional and cost-effective way and allows Stamford Law's lawyers to focus on providing advice and solutions in corporate and disputes situations.
Before the announcement was made on Tuesday, Zico's shares jumped 3.13 per cent, closing at S$0.495.