Gunung looking at stake in Cambodian bank

PETALING JAYA: Gunung Capital Bhd has clarified a local news article which said that the company was looking to acquire a substantial stake in a financial institution in Cambodia valued at more than Us$25mil.

In a filing with Bursa Malaysia, Gunung said its management has been invited by promoters of a yet-to-be-issued, fully fledged commercial banking licence in Cambodia, to evaluate a proposal to participate.

“At this stage of evaluation and discussions, the company cannot confirm the quantum of the investment value involved,” said Gunung.

It added that the management of Gunung is currently in advanced discussions, regarding the allowable equity participation in financial institutions, and other qualitative and quantitative requirements, such as governance issues, imposed by the relevant authorities in Cambodia on foreign equity participation.

“Upon completion of the evaluation of the proposal that the prospective yield of such an equity investment is strongly beneficial to the company, then management will seek a meaningful equity participation of at least 20% equity stake to maximise on this investment opportunity,” said Gunung.

It added that it is premature to conclude that a listing exercise in Cambodia is the company’s only option to unlock the value of such an equity investment. This option is obviously a long-term strategy given the current infancy stage of the commercial bank proposal, the unconcluded evaluation of the proposal, and would require the necessary approvals from relevant authorities in Cambodia to list on the stock exchange.

“The management of the company will look into all options to maximise the financial returns of the company, when and if, the time comes,” said Gunung.