MIDF in talks on tie-up with GCC investment bank
KUALA LUMPUR: Malaysian Industrial Development Finance Bhd (MIDF) is in talks to forge a partnership with an investment bank in a Gulf Cooperation Council (GCC) country to launch new products here.
Group managing director Mohd Najib Abdullah expects an agreement to be inked in three to six months.
“It has always been our intention to have strategic partners in our operation, whether it’s in investment banking or asset management,” he said after the signing ceremony yesterday between MIDF unit MIDF Amanah Investment Bank and Radicare (M) Sdn Bhd for the issuance of RM150mil notes.
Najib said discussions so far had been “amicable and productive, and (both parties) are already in the process of discussing some transactions.”
“What we intend to do is to bring the GCC funds into Malaysia, which is what the Government is supportive of,’’ he said.
Najib said MIDF would hold a substantial, but not controlling, stake in the partnership. “It is fair for us to have a substantial rather than a controlling stake as they are the ones who will be doing the distribution of funds to Malaysia.”
Meanwhile, Radicare is negotiating with a party in the Middle East to form a joint-venture company to provide facilities management services there by mid-year.
“We are also exploring the possibility of setting up linen and laundry services there,” chief executive officer Mohamed Rafique Merican said, adding that it would entail an investment of about RM15mil.
Thanks to the boom in construction activities in the Middle East, Rafique expects huge demand for such services there.
“The contract would be awarded for three years and subject to renewal annually,” he added.
Meanwhile, the RM150mil notes, comprising a RM100mil commercial papers/medium-term notes and RM50mil medium-term notes, are for Radicare's business expansion. The RM100mil notes would enable the company to expand its capacity at its new laundry facility in Selangor and Pahang.
Taken from The Star 11/04/2008
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