IFS Capital, Tat Hong to explore crane leasing business tie-up in China
MAINBOARD-LISTED financing firm IFS CapitalI49 : I49 0% could offer leasing solutions with a focus on tower crane financing in China, under a non-binding memorandum of understanding (MOU) inked and disclosed on Monday (Dec 6).
The deal with Hong Kong-listed crane provider Tat Hong Equipment Service could see IFS Capital owning a 60 per cent stake in a new joint-venture company that would act as a financier in leasing arrangements.
The financier would release funds to the manufacturer, and approved borrowers such as engineering, procurement, and construction contractors would make monthly repayments to the IFS-Tat Hong joint venture.
IFS Capital chief executive Randy Sim said in a statement the planned tie-up would "not only allow us to grow our suite of SME (small and medium-sized enterprise) financing solutions but also extend our geographical footprint into China" as a starting point for new opportunities in that market.
The IFS Capital board disclosed that director and controlling shareholder Lim Hua Min is deemed interested in about 5.55 per cent of Tat Hong Equipment Service voting shares through shares held by Phillip Capital (HK) Ltd. IFS Capital is part of the Phillip Capital network of companies.
Otherwise, no other directors have any interests in the MOU, which is still subject to negotiation and definitive agreements, the board added.
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IFS Capital shares closed unchanged at S$0.175 on Monday, before the news.
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