AP Oil, MoneyMax expand into financial leasing in Chongqing

LUBRICATING-OIL manufacturer AP Oil International is venturing into financial leasing in Chongqing, China through a partnership with Singapore-listed MoneyMax Financial Services and two Chinese companies.

The firm will invest some 25 million yuan (S$5.14 million) for a 12.5 per cent stake in the joint-venture (JV) company. This will be funded by internal funds and bank borrowings.

Chongqing-based motorcycle manufacturer Zongshen will hold the majority stake of the JV at 70 per cent. MoneyMax will hold 12.5 per cent while the Chongqing Free Trade Port Co will own the remaining 5 per cent.

The JV will be engaged in financial leasing, including consulting and the guarantee of leasing, as well as leasing-related technology development and services, in Chongqing.

AP Oil said the new collaboration with Zongshen is an expansion of the existing supplier and customer relationship between the group and Zongshen's subsidiary, and the group intends to explore other business opportunities with Zongshen's subsidiaries.