Resource Holding Management Limited PUCF Collaboration Agreement (2824K)

TIDMRHM

RNS Number : 2824K

Resource Holding Management Limited

29 December 2015

29 December 2015

Resource Holding Management Limited

("RHM" or the "Company")

PUCF Collaboration Agreement

The Board of RHM (AIM:RHM) notes the announcement made on 28 December 2015 by PUCF Founder (MSC) Berhad ("PUCF").

RHM's wholly-owned subsidiary, RedHot Media International Limited ("RMIL"), currently holds 443,168,402 ordinary shares in PUCF, which represents 41.58% of PUCF's issued share capital, and 36,215,840 warrants to subscribe for new PUCF shares.

The PUCF announcement from 28 December 2015 is in respect of PUCF's wholly-owned subsidiary, EPP Solution Sdn Bhd, entering into a cross border internet payment services collaboration agreement with internet financial services group, Lakala Payment Co., Ltd.

The following is an extract from PUCF's announcement:

PUC Founder Inks Cross Border Internet Payment Services Collaboration Agreement with China Lakala

PETALING JAYA, 28 December 2015 - The Board of Directors of PUC FOUNDER (MSC) BERHAD ("PUCF" or the "Company"), a Bursa Malaysia ACE market listed company (Stock code: 0007) is pleased to announce that PUC Founder's wholly-owned subsidiary, EPP Solution Sdn Bhd ("EPP") has entered into a Cross Border Internet Payment Services Collaboration Agreement ("Agreement") with one of the China's leading internet financial services group, Lakala Payment Co., Ltd. ("Lakala"). In this agreement, EPP has been appointed as the sole authorised agent in Malaysia to jointly set up a cross-border financial platform to offer bilateral customers online financial and payment services.

Lakala is a leading online financial services and community e-commerce company whereby Lakala is one of the authorised companies in China to obtain the payment license for all categories issued by the central bank of China.

Lakala provides their customers with diversified financial services and community e-commerce services, including credit checks, credit, finance services, fee payment, repayment and shopping.

Lakala has strategic partnerships with UnionPay and various banks in China including China Construction Bank, Bank of China, Agricultural Bank of China, the Industrial and Commercial Bank of China and Bank of Communications.

Lakala's customer base includes approximately 100 million personal users and more than 3 million corporate users. In 2014, Lakala recorded more than RMB1.8 trillion in payment transactions. It was founded in 2005 and is based in Beijing, China. Lakala is a subsidiary of Legend Holdings Corporation, which is one of the largest diversified conglomerates in China. In 2014, its revenue was approximately RMB289.5 billion and its total asset was approximately RMB289 billion.

EPP's Chief Executive Officer, Mr Kenneth Hiew commented, "This collaboration is a strategic move for both EPP and Lakala. The main beneficiaries will be merchants in Malaysia and China UnionPay ("CUP") cardholders as they would be provided with more online payment options with the addition of CUP. As we broaden the acceptance of the system with Malaysia's merchants, CUP cardholders can conveniently make their online transaction payments."

The Agreement is effective for one year upon signing and sealing date and is automatically renew every year unless both parties agree to terminate the Agreement.

PUC Founder Group Managing Director, Mr. Cheong Chia Chieh commented, "We are expecting the revenue contribution from this business starting from second quarter next year. 2016 will be an exciting year for us as we will be seeing revenue contributions from our new business namely our 1 MW solar power plant and also our existing payment solutions business. We will strive to work harder and achieve better results to enhance our shareholders' value."

PUC Founder has on 9 December 2015 received approval from the Securities Commission for the proposed rights issues of ICULS with warrants to raise up to RM83.9 million ("Proposed Rights Issue"). The extraordinary general meeting for the Proposed Rights Issue will take place on 29 December 2015.

For further information please contact:

 
Resource Holding Management Limited 
Cheong Chia Chieh                    Tel: [phone] 
 
Allenby Capital Limited (Nominated   Tel: +44 (0)203 
 Adviser and Broker)                  328 5656 
Nick Athanas / Alex Brearley 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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December 29, 2015 02:01 ET (07:01 GMT)