Malaysian investment

RNS Number:3038A
London Asia Capital PLC
30 June 2004

30th June 2004



            LONDON ASIA CAPITAL PLC ("London Asia" or the "Company")



       Acquisition of 30% stake in Malaysian Investment Banking Business



London Asia Capital, the AIM-listed Greater China focused investment banking
business, is pleased to announce that it has taken an 30% stake in a profitable
Malaysia based investment banking boutique, EAsset Management Sdn Bhd ("EAsset")
for a total consideration of #600,000 payable in London Asia shares.



EAsset's existing activities include fund management, placement syndication, IPO
co-ordination and underwriting.  EAsset's funds under management are rapidly
increasing as a result of Malaysia's strong economy, part fuelled by exports of
commodities and bilateral Malaysia-China trade.  EAsset is also developing a
strong reputation for sponsoring listings on MESDAQ, the Malaysian Stock
Exchanges market for high growth technology businesses.



EAsset's management team includes a mix of investment bankers, researchers and
analysts.  Joe Wong, the Chief Executive, is ex Senior Vice President,
Institutional Sales at Affin-United Overseas Bank's Malaysian operation and ex
head of research at S.J. Securities.   EAsset is Chaired by Dato' Dr Mohamad bin
Hashim, former Chairman of the shipping business Global Carriers Bhd.  Victor Ng
will be taking a seat on the Board to represent London Asia's interest.



Consideration for the acquisition is being satisfied via the issue of 3,287,671
new London Asia ordinary shares of 5p each at a price of 18.25p per share.
Application has been made for the shares to be traded on AIM, with admission
expected on 7th July 2004.



Victor Ng, Director of London Asia China Operations said: "This investment
furthers our aim of building an Asian focused investment banking business to
complement our China focused investing activities.  In conjunction with our
other activities, it should enable us to take advantage of the very high savings
rates across Asia, generating funds for further investment in China projects."



Dr Joe Wong, Chief Executive of EAsset, said: "With London Asia behind us, we
anticipate a substantial expansion of our business. We hope to take advantage of
the enthusiasm of investors in Malaysia, a country with a large ethnic Chinese
population, to gain exposure to investment opportunities in China."



Simon Littlewood, Chief Executive of London Asia, said: "This further extends
our existing network across Asia, providing the opportunity to list Chinese
businesses in Malaysia, as well as to raise funds for investment in China.
Easset's team will also work with our existing team in Singapore for listings on
the Singapore market".





ENQUIRIES:

Simon Littlewood, CEO                                        Tel [phone]



Paul McManus, Binns & Co                                          Tel [phone]
1485


    Mob [phone]





About London Asia Capital plc



London Asia Capital plc ("London Asia") is a leading AIM listed investment and
financial advisory company focused on the Greater China SME market (China,
Taiwan, Hong Kong, and S.E. Asia).



London Asia has identified that as a result of the booming Chinese economy and
an underdeveloped financial services industry there is strong demand for both
capital and skilled financial advisory services in China, especially among
small-to-medium sized enterprises.



London Asia operate two principal businesses within Greater China:

*         Investment in profitable businesses with exits via IPO or trade sale

*         Investment Banking services, mainly corporate finance advisory (fund
raisings, IPO's)



London Asia has a growing list of investments. Investments are paid for via a
mix of cash and London Asia shares and are focused on distinct industry sectors:



*         Financial Services

*         Media

*         Information technology & telecom

*         Infrastructure & natural resources



London Asia has offices and management teams, as well as strong local partners,
across the Greater China region which provides direct access to investment
opportunities, close relationships with corporate clients, a good level of
control over existing investments, access to local market intelligence as well
as providing leverage through a network of partners. London Asia also has
alliances with Chinese business parks, which gives London Asia access to over
7,000 Chinese businesses.






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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