MeGroup inks deal with Mitsubishi Motors to operate a dealership

CATALIST-LISTED Malaysian-based automotive company MeGroup on Thursday said it has accepted a letter of offer from Mitsubishi Motors Malaysia, the official distributor of the Mitsubishi Motors brand of cars in Malaysia, to set up and run a 3S automobile dealership under the brand.

A 3S dealership comprises the sale of automobiles, after-sales services, as well as sale of automobile parts and accessories.

This represents the group's first Mitsubishi Motors dealership. The showroom, to be located at Kuala Selangor, Selangor, Malaysia, is expected to begin operations in the second quarter of 2020, with the service-centre operations to start in the fourth quarter of the same year.

With the latest Mitsubishi Motors addition to the dealership portfolio, MeGroup now has nine dealership outlets under six brands - Ford, Honda, Hyundai, Mazda, Mitsubishi and Peugeot.

The group intends to fund its subsidiary which will operate the Mitsubishi Motors dealership using about S$327,321 from the group's initial public offering proceeds. The group, which listed on the Singapore Exchange in October 2018, said it does not expect any material impact for the current financial year ending March 31, 2020.