SINGAPORE: SGX-Catalist listed MeGroup Ltd. has incorporated a new wholly-owned subsidiary, MN Automart under Menang Nusantara Holdings for the purpose of entering into a Letter of Award (LOA) with Hyundai-Sime Darby Motors, the official distributor of Hyundai automobiles in Malaysia.
Sime Darby had awarded to the Group, rights to operate a Hyundai 3S automobile dealership Bandar Bukit Raja in Klang, Selangor, Malaysia. The Group’s first Hyundai dealership will be offering new Hyundai models such as Elantra, IONIQ, Tucson, SantaFe and Starex and is slated to be fully operational in the second half of the 2019 calendar year.
Wong Cheong Chee, Executive Chairman and CEO of MeGroup Ltd. commented: “Hyundai, the number one carmaker in South Korea, is slowly gaining popularity here in Malaysia. They have also been carrying out a number of facelifts to their popular models and had unveiled them in the last couple of months. This Hyundai addition to our portfolio of brands further cements our reputation as a reliable and trusted Company. Our first Hyundai dealership will be covering the areas surrounding Klang, Kapar, Setia Alam and Shah Alam, which have a very high potential for growth.”
The Group intends to raise the issued and paid-up capital of MN Automart to RM1.0 million, or approximately S$0.3 million. This will be funded by proceeds from the Group’s IPO and is not expected to have any material impact on the Group’s net tangible assets per share and earnings per share for the financial year ending 31 March 2020.
“We had also recently received approval to operate a third Peugeot dealership as well as renewed our agreement to continue the Mazda dealership. Together, the Group will operate 7 dealerships under its wings, and we are committed in growing this business so as to bring valuable returns to our shareholders”, added Wong.