Independent corporate finance and investment advisory firm, specialising in smaller quoted and larger unquoted companies
20 March 2008
Merchant House Group plc, the AIM listed merchant banking business, is taking a 49% stake in a new venture aimed at bringing Singapore, Hong Kong and Malaysian companies to the London market.
The new company, Merchant Capital Pte Ltd (MCPL), based in Singapore and which will trade in the region as Merchant Capital Singapore, has already a number of potential clients involved in computer manufacturing, hotel television content, education and food distribution to explore the possibility of their listing on PLUS.
Merchant House Group will own 49% of MCPL, a new company with minimal issued share capital and the balance of 51% will be held by the local management team. MCPL will be managed by Adam Chan and Tony Sanichara, who bring extensive corporate finance experience ranging from venture capital to M&A management as well as an invaluable knowledge of the Asian market. It is envisaged that MCPL will introduce business to MHG’s corporate finance business, Merchant Capital, in London.
Tony Sanichara, Director of MCPL, said: ‘In two years, the Singapore small cap market (SESDAQ) will be changing. There are over 150 companies listed on this exchange which will need to seek admission to the main board or secure a sponsor for the CATALIST board the new, sponsor supervised successor to SESDAQ, and is part of the Singapore Stock Exchange. This might prove a barrier for some of the smaller, fast growing companies currently on SESDAQ’.
MHG Chairman, Martin Eberhardt, said: ‘We see this as the next important step in the restructuring and consolidation of the group. MCPL will see opportunities in Singapore, Hong Kong and Malaysia where access to the London capital markets will provide alternatives for fast growing companies in these competitive markets.’
The establishment of MCPL is the latest in a series of recent moves initiated to broaden the corporate and merchant banking services provided by Merchant House Group by utilising its new business model which has been devised to increase revenue and operating margins through revenue sharing partnerships that will function on a low cost basis.
Within the past few weeks, MHG has also announced its link with Merchant Legal LLP and the formation of Merchant Wealth Management Ltd, together with the restructuring of the corporate finance activities of Merchant Capital. Last week, the company announced a fundraising in order to build a broking and fundraising business.
Along with Merchant House Finance Ltd, a leasing and asset finance joint venture of which MHG holds 49%, the group is now positioned to offer full cycle finance services ranging from fund-raisings and PLUS listings as corporate advisors, through to wealth realisation and management.
Merchant Capital Limited
Aldermary House
10-15 Queen Street
London EC4N 1TX
United Kingdom
Tel: +44 (0)20 7332 2200