KUALA LUMPUR (Dec 8): G Capital Bhd said it has received approval in principle from Cambodia’s central bank to set up a full-fledged commercial bank in the country with other partners.
The group said it has entered into a heads of agreement with two parties — Public Bank Bhd’s Indo-China operations regional head Datuk Phan Ying Tong and Cambodian firm E S Packaging Co Ltd — to jointly undertake the venture.
"Specifically, the HoA has been structured to outline the preliminary undertakings and obligations of the parties with a view to enter into legally binding definitive agreement between the parties to establish ‘Oriental Bank Plc’,” the group said in a filing with Bursa Malaysia.
G Capital said it will hold not less than 20% of the issued shares of the new company, while Phan will have a 51% stake and E S Packaging a 20% stake. The balance 9% interest will be held by an additional investor to be identified by Phan or E S Packaging.
G Capital said subsequent to obtaining the approval-in-principle from the National Bank of Cambodia, Oriental Bank can now be formally registered with Cambodia's Ministry of Commerce.
According to the group, the financial health of Cambodia has shown steady growth and its banking sector has emerged as one of the most robust industries set on making healthy profits.
"G Capital envisages that in the long term, its equity participation in the banking sector will significantly strengthen its financial standing and broaden its presence throughout the region," it said.
G Capital, formerly known as Gunung Capital, is principally involved in the provision of charter services with a fleet of land-based passenger transportation assets and specialty vehicles.
Shares of G Capital rose one sen or 0.76% today to close at RM1.33, with a market capitalisation of RM404.04 million.