The Borneo Post (Sabah)
PCCS invests RM4 mln and enters the used car financing and insurance business
KUALA LUMPUR: PCCS Group Bhd has entered into a shareholders agreement with See Kok Wah, for the purposes of establishing and operating the lucrative used four-wheeled vehicles financing and insurance business in Johor and Melaka.
The joint venture (JV) company shall be known as Southern Auto Capital Sdn Bhd, where its principal business shall be of Used Vehicles financing and insurance within Johor and Melaka. This JV company shall commence its business on May 1, 2021.
PCCS shall be holding an 80 per cent stake in the JV company, and will be investing RM4 million in this new business. See shall hold the remaining 20 per cent and put in capital of RM1 million.
Thus, the initial issued and paid-up capital of the JV Company shall be RM5 million.
Meanwhile, See is the advisor of 365 Capital Sdn Bhd, a company principally engaged in the business of used cars financing, and has extensive expertise, know-how, experience and network in successfully undertaking such business.
“We are very happy to welcome
Justin (See) as our partner in this venture.
“With more than 25 years of experience in the automobile industry, we are confident of See’s ability to steer this new business into something significant moving forward,” said PCCS founder and group executive chairman Chan Choo Sing.
In a filing to Bursa, PCCS said that this new venture is part of PCCS plan to diversify its businesses and ultimately to bring resilience to whole business framework of the group.
“With the current enormous used car market especially private car transactions with 400,000 units in a year, the company expects positive contribution from the business within a year,” said Chan.