MERCURIUS Capital Investment said on Monday it intends to diversify its existing scope of core businesses to include the property development and property investment.
In a filing to Singapore Exchange, it said under the proposed diversification, the company had on Feb 22 incorporated a wholly owned subsidiary, Mercurius Capital Sdn Bhd (MCSB), in Malaysia as an investment holding vehicle.
It added that MCSB had on Feb 23 incorporated a wholly owned subsidiary, Mercurius HM Realty Sdn Bhd (MHMR), in Malaysia as a joint-venture vehicle for the purpose of a proposed joint venture with HM Realty Holdings Sdn Bhd (HM Realty) and Goh Siik Mee.
MCSB has entered into option agreements with JBL Capital, GCA Capital, GCS Realty and ACG Holdings to jointly develop in the future with these parties real estate properties in Malaysia at the option fee of RM1,000 (S$317) for each option agreement.
Mercurius had on Feb 23 also entered into a conditional sale-and-purchase agreement with Guo Jindian, where it has agreed to dispose of its entire shareholding interests of 57,472 shares, representing 100 per cent of its entire issued and paid-up share capital of China Children Fashion Holdings, for S$2 million.
Said Mercurius: "The proposed diversification of the group's business to include the property business is expected to provide additional revenue streams for the group, enable the group to expand its revenue base, reduce the group's reliance on the existing business, which remains competitive and challenging, and offer new business opportunities so as to enhance shareholders' value for the company."