As
part of our long-term growth strategy, ASMB has identified
as part of its diversification plans, investment holding
on a long term basis in unquoted companies.
The proposed investments
shall generally focus on companies with strategic and
viable businesses that can additionally provide some
form of synergistic benefits to the group as well as
a steady source of dividend income in the long term.
Unlike investments
made under our venture capital/mezzanine investment
scheme which are for the short to medium term, the target
companies under this scheme are expected to be in sectors
which require a longer gestation period and therefore
would require a holding period of more than 5 years.
Some of the sectors identified under the scheme include
small and medium sized industries (SMIs) involved in
vendor development programmes and companies in the education,
health care and food-based industries as well as the
privatisation of government projects.
In view of the
longer investment tenure, ASMB expects to hold 20% to
51% of the investee companies’ equity to enable
effective participation in the management and decision
making process of the said companies. The proposed investment
is also expected to provide opportunities for employee
growth through secondments or transfers of existing
personnel.
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